Legislature(2015 - 2016)BARNES 124
04/13/2016 03:15 PM LABOR & COMMERCE
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|Alaska Gasline Development Corporation Board of Directors|
* first hearing in first committee of referral
= bill was previously heard/scheduled
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SB 158-REAL ESTATE COMMISSION;BROKER LICENSING 4:10:30 PM CHAIR OLSON announced that the next order of business would be SENATE BILL NO. 158, "An Act relating to real estate broker licensure; relating to the real estate commission; and providing for an effective date." 4:10:38 PM WESTON EILER, Staff, Senator Mia Costello, informed the committee SB 158 raises the requirements to become a licensed real estate broker, the highest level of real estate licensee. The bill was brought forward by the industry to improve professional standards and protect consumers. Real estate brokers handle complex business transactions, and real estate transactions, and supervise associate brokers and new licensees. Mr. Eiler described the increasing complexity of the real estate industry, and stated that the bill increases the length of time a broker applicant must have held a real estate license from 24 months to 48 months, increases the continuing education requirement from 15 hours to 30 hours, and adds additional training and experience to help brokers perform their duties. He paraphrased from the following sectional analysis [original punctuation provided]: Section 1: Amends AS 08.88.091(c) to require individuals complete 30 hours of continuing education prior to being licensed as a real estate broker or associate real estate broker rather than 15 hours. Section 2: Amends AS 08.88.171(a) to require applicants for a real estate broker license have at least 48 months of active continuous experience as a real estate licensee within the past 60 months rather than 24 months of active continuous experience as a real estate licensee within the past 36 months. Section 3: Amends AS 08.88.171(a) to require applicants for an associate real estate broker license have at least 48 months of active continuous experience as a real estate licensee within the past 60 months rather than 24 months of active continuous experience as a real estate licensee within the past 36 months. Section 4: Addresses applicability for the changes to be effective January 1, 2017. Section 5: Permits the real estate commission to adopt regulations prior to January 1, 2017 that would become effective January 1, 2017. Sections 6-7: Effective dates. 4:15:12 PM REPRESENTATIVE JOSEPHSON asked for the stance of those opposing the bill. MR. EILER said the sponsor has received questions related to the timeline from one broker applicant. REPRESENTATIVE JOSEPHSON directed attention to page 2, lines [26-27], which read: preceding application for the license, furnishes satisfactory proof that errors and omissions insurance required under AS 08.88.172 has been obtained, is not under REPRESENTATIVE JOSEPHSON asked whether the requirement for errors and omissions insurance is a reasonable request. MR. EILER pointed out that that language is in existing statute and is not amended by the bill. REPRESENTATIVE JOSEPHSON, at the request of the chair, held his question. REPRESENTATIVE LEDOUX advised that she has received letters in opposition to the bill. MR. EILER stated that the sponsor has received letters of support from the Alaska Association of Realtors and the Alaska Real Estate Commission. 4:18:34 PM REPRESENTATIVE HUGHES moved to adopt the proposed House committee substitute (HCS) for SB 158, Version 29-LS1303\H, Bruce, 4/5/16, as the working document. 4:18:52 PM CHAIR OLSON objected for discussion purposes. 4:18:59 PM KONRAD JACKSON, Staff, Representative Kurt Olson, informed the committee the proposed House committee substitute (HCS) makes two changes. On page 3, line 16 of the bill, the proposed HCS adds a new section that repeals AS 08.88.172(e), which is the subsection that voids the requirement that a real estate broker, associate real estate broker, and real estate salesperson shall carry and maintain errors and omissions insurance under certain conditions. In addition, an effective date is inserted in new Section 9, which makes the effective date of the repealer 1/1/18, and allows one currently in the process of becoming a real estate broker to complete his/her application for license. REPRESENTATIVE COLVER asked for the effect of Section 4 of the proposed HCS. 4:21:19 PM MR. JACKSON read from current statutes AS 08.88.172(e) as follows [in part]: If the commission is unable to obtain a master errors and omissions insurance policy to insure licensees that meets the terms and conditions established under (b) of this section, the requirement that a real estate licensee carry and maintain errors and omissions insurance under AS 08.88.172 is void .... MR. JACKSON advised that the effect of the proposed HCS is that errors and omissions insurance will be required. 4:21:57 PM REPRESENTATIVE COLVER stated his intent to submit an amendment to remove the requirement for errors and omissions insurance. He stated it is not customary practice to require errors and omissions insurance to get a license, and it is not in the public interest to require a policy. CHAIR OLSON noted that there has been minimal contact from the industry in this regard. REPRESENTATIVE LEDOUX asked what professions are required to have errors and omissions insurance to obtain licensing. She stated her understanding that errors and omissions insurance is not required of lawyers or doctors. REPRESENTATIVE COLVER said he will offer an amendment. 4:25:20 PM CHAIR OLSON announced SB 158 was held over.