Legislature(2011 - 2012)BARNES 124

02/06/2012 03:15 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 92 DENTISTS/DENTAL HYGIENISTS/ASSISTANTS TELECONFERENCED
Moved HCS CSSB 92(L&C) Out of Committee
*+ HB 267 REAL ESTATE SALES LICENSEES TELECONFERENCED
Moved CSHB 267(L&C) Out of Committee
               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