Legislature(2017 - 2018)SENATE FINANCE 532

04/03/2018 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 76 MARICULTURE REVOLVING LOAN FUND TELECONFERENCED
<Bill Hearing Postponed until 1:30 p.m.>
+ HB 128 SHELLFISH ENHANCE. PROJECTS; HATCHERIES TELECONFERENCED
<Bill Hearing Postponed until 1:30 p.m.>
+= HB 286 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Scheduled but Not Heard
<Pending Referral>
+ HB 273 EXTEND: MARIJUANA CONTROL BOARD TELECONFERENCED
Heard & Held
+ HB 274 EXTEND: BD OF PSYCHOLOGISTS/PSYCH ASSOC. TELECONFERENCED
Moved HB 274 Out of Committee
+ HB 275 EXTEND: BOARD OF MASSAGE THERAPISTS TELECONFERENCED
Heard & Held
+ HB 278 EXTEND:CERT. REAL ESTATE APPRAISERS BOARD TELECONFERENCED
Heard & Held
+ HB 279 EXTEND: REAL ESTATE COMMISSION TELECONFERENCED
Heard & Held
+ HB 280 EXTEND: BOARD OF MARITAL & FAMILY THERAPY TELECONFERENCED
Moved HB 280 Out of Committee
+ HB 302 EXTEND: BOARD OF PROFESSIONAL COUNSELORS TELECONFERENCED
Moved HB 302 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 279                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Real                                                                         
     Estate Commission; and providing for an effective                                                                          
     date."                                                                                                                     
                                                                                                                                
10:57:44 AM                                                                                                                   
                                                                                                                                
MEGAN   HOLLAND,  STAFF,   REPRESENTATIVE  ANDY   JOSEPHSON,                                                                    
discussed HB 279. She stated  that the bill would extend the                                                                    
termination date  of the Real Estate  Commission. She stated                                                                    
that the commission oversaw  brokers, associate brokers, and                                                                    
sales licensees.  They were  responsible for  the regulation                                                                    
of   supervisors   and   licensees,  and   enforcing   their                                                                    
requirements.     The    commission     currently    oversaw                                                                    
approximately   2500   licensees,   and  received   a   full                                                                    
recommended eight-year extension from Legislative Audit.                                                                        
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT,  addressed the document "A  Sunset Review                                                                    
of  the  Department  of Commerce,  Community,  and  Economic                                                                    
Development,  Real Estate  Commission" (copy  on file).  She                                                                    
stated that  report conclusions began  on page 7.  The audit                                                                    
concluded  that  the  commission was  serving  the  public's                                                                    
interest  by  effectively   licensing  and  regulating  real                                                                    
estate  licensees and  real estate  offices. The  commission                                                                    
monitored  licensees   and  worked   to  ensure   that  only                                                                    
qualified    individuals    practiced.   Furthermore,    the                                                                    
commission developed and adopted  regulations to improve the                                                                    
real  estate  industry and  protect  the  public. The  audit                                                                    
recommended  an eight-year  extension.  She  noted that  the                                                                    
audit  period was  fairly  short, at  less  than two  years,                                                                    
because  the prior  sunset audit  was dated  July 2015.  The                                                                    
prior  sunset  audit  identified  that  the  board  was  not                                                                    
serving  the public's  interest,  because it  had failed  to                                                                    
adopt a  Master Errors  and Emissions Insurance  Policy. The                                                                    
commission was  required by  a 2008 law  to obtain  a master                                                                    
policy,  and make  it available  to licensees.  The statutes                                                                    
also stated that licensees could  obtain an insurance policy                                                                    
independently through  a private firm or  through the master                                                                    
policy provided to them.                                                                                                        
                                                                                                                                
11:02:22 AM                                                                                                                   
                                                                                                                                
Senator von  Imhof referenced  the surplus  on page  12. She                                                                    
wondered  whether  the  provision of  the  recovery  balance                                                                    
related to the surplus.                                                                                                         
                                                                                                                                
Ms.   Curtis  wondered   whether  Senator   von  Imhof   was                                                                    
referencing exhibit 4.                                                                                                          
                                                                                                                                
Senator von Imhof replied in the affirmative.                                                                                   
                                                                                                                                
Ms.  Curtis  stated  that  page 15,  exhibit  6  showed  the                                                                    
recovery fund balance.                                                                                                          
                                                                                                                                
Senator von Imhof asked if exhibit  4 and exhibit 6 were two                                                                    
separate financial  transactions. She wondered how  the fees                                                                    
were collected for exhibit 6.                                                                                                   
                                                                                                                                
Ms. Curtis  replied that they  were part of the  charged fee                                                                    
to the  applicant. There was  a separate fee  established on                                                                    
exhibit 5.                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon wanted page numbers.                                                                                         
                                                                                                                                
Ms. Curtis  replied that  the fee was  collected as  part of                                                                    
the licensing process.                                                                                                          
                                                                                                                                
Senator  Stevens   looked  at  page  17,   and  queried  the                                                                    
acceptable period of inactivity.                                                                                                
                                                                                                                                
Ms. Curtis believed there was a six-month goal.                                                                                 
                                                                                                                                
Co-Chair  MacKinnon asked  about how  the division  measured                                                                    
the length of extension.                                                                                                        
                                                                                                                                
Ms. Curtis  stated that there  were few  courtesy licensees.                                                                    
She remarked that it was not a material recommendation.                                                                         
                                                                                                                                
11:06:54 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:07:27 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
TRACI BARICKMAN, CHAIR, REAL  ESTATE COMMISSION, PALMER (via                                                                    
teleconference),  testified  in  support of  the  bill.  She                                                                    
stated that the commission operated well.                                                                                       
                                                                                                                                
11:08:46 AM                                                                                                                   
                                                                                                                                
DEBORAH  BAROLLINI,  SELF, ANCHORAGE  (via  teleconference),                                                                    
spoke  in opposition  to  the bill.  She  asserted that  the                                                                    
commission did  not offer the  transparency that  the public                                                                    
deserved. She  stated that  she had  a complaint,  which was                                                                    
ignored by the commission.                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon  relayed  that   the  committee  was  in                                                                    
receipt  of   Ms.  Barollini's   email  pertaining   to  the                                                                    
difficulties that  she had experienced  in working  with the                                                                    
commission.                                                                                                                     
                                                                                                                                
11:13:28 AM                                                                                                                   
                                                                                                                                
Senator Micciche asked Ms. Barickman  about a complaint that                                                                    
was submitted, asked why the complaint was rejected.                                                                            
                                                                                                                                
Ms. Barickman  stated that the complaint  process first went                                                                    
through the division,  where it must be  determined that the                                                                    
REC had  jurisdiction. She  understood that  Ms. Barollini's                                                                    
complaint   was  not   within   the   jurisdiction  of   the                                                                    
commission, and it had not been received by the commission.                                                                     
                                                                                                                                
Senator Micciche  asked what it  would take for  a complaint                                                                    
against  a  licensee to  be  within  the jurisdiction  of  a                                                                    
licensee.                                                                                                                       
                                                                                                                                
Ms. Barickman  stated that in  the case of a  complaint that                                                                    
was deemed to be within  the jurisdiction of the commission,                                                                    
the  division  would open  a  case.  Typically there  was  a                                                                    
consent agreement, and the respondent would be notified.                                                                        
                                                                                                                                
Co-Chair MacKinnon //                                                                                                           
                                                                                                                                
Senator  Micciche  asked Ms.  Barickman  if  there had  been                                                                    
discipline  on  any  realtor. He  wondered  if  the  process                                                                    
worked if there  had been issues within  the jurisdiction of                                                                    
the committee.                                                                                                                  
                                                                                                                                
Mr. Barickman  answered in the  affirmative. She  added that                                                                    
the commission's  quarterly meetings  were public,  but were                                                                    
not the appropriate forum for hearing complaints.                                                                               
                                                                                                                                
11:19:18 AM                                                                                                                   
                                                                                                                                
Senator  Micciche asked  Ms.  Chambers  why Ms.  Barollini's                                                                    
complaint had not reached the commission's jurisdiction.                                                                        
                                                                                                                                
SARA  CHAMBERS, DEPUTY  DIRECTOR, DIVISION  OF CORPORATIONS,                                                                    
BUSINESS   AND   PROFESSIONAL   LICENSING,   DEPARTMENT   OF                                                                    
COMMERCE, COMMUNITY  AND ECONOMIC DEVELOPMENT,  affirmed she                                                                    
had   reviewed  the   investigative   file  containing   Ms.                                                                    
Barollini's  complaint. The  concerns were  found not  to be                                                                    
within the jurisdiction of the  commission, but rather under                                                                    
the  purview  of the  Department  of  Law and  the  Landlord                                                                    
Tenant   Act.   Ms.   Barollini  was   provided   with   the                                                                    
information.                                                                                                                    
                                                                                                                                
Senator Micciche asked if the  Landlord Tenant Act covered a                                                                    
home in a condominium association.                                                                                              
                                                                                                                                
Ms. Chambers  deferred to  the Department  of Law.  She also                                                                    
agreed to provide further information.                                                                                          
                                                                                                                                
Senator   Micciche  thought   it  sounded   as  though   the                                                                    
commission was  not allowed  the opportunity  to act  on the                                                                    
matter. He wanted to reconcile the complaint.                                                                                   
                                                                                                                                
Ms. Chambers was  happy to work with  the chief investigator                                                                    
to ensure a thorough review of the case.                                                                                        
                                                                                                                                
Co-Chair   MacKinnon  believed   that   Ms.  Barollini   was                                                                    
suggesting that if a person was  not competent to act in the                                                                    
other  role  as  a  licensure,  the  board  should  make  an                                                                    
examination.                                                                                                                    
                                                                                                                                
11:24:08 AM                                                                                                                   
                                                                                                                                
ERROL  CHAMPION,  ALASKA  ASSOCIATION OF  REALTORS,  JUNEAU,                                                                    
spoke in support of the bill. He appreciated the efforts.                                                                       
                                                                                                                                
Senator Micciche discussed the fiscal note.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
HB 279 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
11:27:15 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
11:27:47 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed committee business.                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB273 Legislative Audit 01.19.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 273
HB273 Sponsor Statement 01.19.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 273
HB274 Sponsor Statement 1.29.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 274
HB274 Supporting Document - 2017 Legislative Audit 1.29.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 274
HB 275 01.19.18 Support Letters.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB 275 Support Gilmour.docx SFIN 4/3/2018 9:00:00 AM
HB 275
HB275 01.19.18 Opposition Letters.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB275 Legislative Audit 10.11.17.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB275(FIN) Sponsor Statement.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB278 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB278 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB279 Letter of Opposition 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Letter of Support 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB280 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 280
HB280 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 280
HB302 Sponsor Statement.pdf SFIN 4/3/2018 9:00:00 AM
HB 302
Professional Counselors Audit Report.pdf SFIN 4/3/2018 9:00:00 AM
HB 302
HB 279 Senare Finance Testimony Brollini 2.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB 278, 275, 278, 279 DCCED Response - Corporations Buisness, and Professional Licensing 040318.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB 76 follow up S FIN (DED).pdf SFIN 4/3/2018 9:00:00 AM
HB 76
HB 279 - Brickman Testimony 4.4.2018.pdf SFIN 4/3/2018 9:00:00 AM
HB 279