04/29/2004 02:46 PM Senate L&C

     CSHB 418(FIN)-REAL ESTATE COM'N/LICENSEE/HOME INSPECT                                                                  
                                                                                                                              
CHAIR  CON   BUNDE  announced   CSHB  418(FIN)   to  be   up  for                                                               
consideration.                                                                                                                  
                                                                                                                                
MS.  JANET SYKES,  staff to  Representative  Rokeberg, said  that                                                               
CSHB 418(FIN) extends  the life of the Real  Estate Commission as                                                               
recommended in  the audit, clarifies  procedures with  regards to                                                               
inactive  real  estate   licensees,  clarifies  requirements  for                                                               
contact information and notices,  and makes clarifying amendments                                                               
to home inspection legislation.                                                                                                 
                                                                                                                                
MR.  WILLIAM BRUU  supported HB  418. "I  think it's  an absolute                                                               
necessity that  we tune up  the home inspector statute."  His one                                                               
concern  is  that  current regulations  fail  to  grandfather  in                                                               
individuals who have been certified  inspectors for as long as 15                                                               
years.                                                                                                                          
                                                                                                                                
MR.  DAVID  FEEKIN,  Legislative  Chair,  Alaska  Association  of                                                               
Realtors, supported HB 418.                                                                                                     
                                                                                                                                
MS. PAT DAVIDSON,  Division of Legislative Audit,  said this bill                                                               
addresses   one  of   the  audit's   concerns  relating   to  the                                                               
notification  of a  determination  against a  license. Two  other                                                               
issues weren't addressed  and one is to increase  the award limit                                                               
from $10,000 to $20,000. The  $10,000 cap was established in 1974                                                               
and has  not been revised since  then. The last five  payments in                                                               
the  last few  years  have  been for  the  full  $10,000 and  the                                                               
alleged losses  in those  claims exceeded $10,000  - all  but one                                                               
was  over $20,000.  Moving the  cap to  $20,000 would  assist the                                                               
buyers who  have suffered from fraud  or deceit by a  real estate                                                               
agent.                                                                                                                          
                                                                                                                                
The second  item that is not  addressed has to do  with confusion                                                               
by  the Real  Estate  Commission  on how  mobile  home sales  are                                                               
handled  by licensees.  She explained  that the  audit recommends                                                               
mobile  home transactions  handled by  real estate  agents to  be                                                               
covered  by the  surety funds.  She elaborated  that mobile  home                                                               
transactions  are  not required  to  be  handled by  real  estate                                                               
agents and she  is not recommending that, but rather  if a person                                                               
does   seek  the   assistance  of   a  licensed   realtor,  those                                                               
transactions should be covered by the surety fund.                                                                              
                                                                                                                                
CHAIR BUNDE thanked her and put  HB 418 aside until the committee                                                               
had a quorum.