Legislature(2009 - 2010)BARNES 124
03/02/2009 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB129 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 129 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 2, 2009
3:19 p.m.
MEMBERS PRESENT
Representative Mark Neuman, Vice Chair
Representative John Coghill
Representative Bob Lynn
Representative Robert L. "Bob" Buch
Representative Lindsey Holmes
MEMBERS ABSENT
Representative Kurt Olson, Chair
Representative Mike Chenault
COMMITTEE CALENDAR
HOUSE BILL NO. 129
"An Act providing authority to the Real Estate Commission to
revoke real estate salesperson licenses of persons convicted of
certain crimes."
- MOVED HB 129 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 129
SHORT TITLE: REVOKING REAL ESTATE SALESPERSON LICENSES
SPONSOR(s): REPRESENTATIVE(s) RAMRAS
02/13/09 (H) READ THE FIRST TIME - REFERRALS
02/13/09 (H) L&C
03/02/09 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE JAY RAMRAS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 129.
ART CLARK
Alaska Association of Realtors (AAR)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 129.
SHARON WALSH, Administrator
Real Estate Commission
Division of Corporations, Business and Professional Licensing,
Department of Commerce, Community, & Economic Development
(DCCED)
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the discussion of
HB 129.
ACTION NARRATIVE
3:19:07 PM
VICE-CHAIR NEUMAN called the House Labor and Commerce Standing
Committee meeting to order at 3:19 p.m. Representatives Buch,
Coghill, Holmes, and Neuman were present at the call to order.
Representative Lynn arrived as the meeting was in progress.
3:19:17 PM
HB 129-REVOKING REAL ESTATE SALESPERSON LICENSES
VICE CHAIR NEUMAN announced that the only order of business
would be HOUSE BILL NO. 129, "An Act providing authority to the
Real Estate Commission to revoke real estate salesperson
licenses of persons convicted of certain crimes."
3:19:27 PM
REPRESENTATIVE JAY RAMRAS, Alaska State Legislature, testifying
as prime sponsor of HB 129, stated that this bill makes a simple
but needed correction to existing law. Under current law, the
Alaska Real Estate Commission must revoke the license of a real
estate broker or associate broker if the person is convicted of
a felony or other crime of forgery, theft, extortion, conspiracy
to defraud creditors, or fraud. While licensed brokers and
associate brokers can be removed from the profession, this law
does not currently apply to real estate salespersons. This bill
is by the request of the Real Estate Commission. The
Association of Realtors brought this matter to the attention of
the Real Estate Commission (REC) when a real estate
salesperson was indicted on five counts of bribery, money
laundering, and importing a controlled substance. While the
real estate salesperson did plead guilty to drug trafficking,
the REC had no power to revoke the salesperson's license.
Representative Ramras stated that this compromised the industry
and the faith and trust the public places in what is otherwise a
very noble profession. He stated that HB 129 will help the real
estate profession by allowing it to police its licensees.
3:22:16 PM
REPRESENTATIVE LYNN stated he wished to declare a conflict of
interest. He stated he is a licensed Alaska real estate broker
acting as an associate broker. He offered that his license is
currently in referral status.
REPRESENTATIVE HOLMES inquired as to whether Representative Lynn
could describe which category of real estate license he holds.
REPRESENTATIVE LYNN reiterated that he is currently an associate
broker, but also mentioned he has functioned in all the real
estate licensee categories.
3:24:20 PM
ART CLARK, Alaska Association of Realtors (AAR), stated that he
is representing the AAR. He offered his belief that HB 129 is a
clarification in the real estate law. He offered his belief
that the language for salespersons was inadvertently omitted.
He stated the AAR is in favor of the change that HB 129
addresses.
3:25:13 PM
SHARON WALSH, Administrator, Real Estate Commission, Division of
Corporations, Business and Professional Licensing, Department of
Commerce, Community, & Economic Development (DCCED), stated she
is available to answer questions.
3:25:51 PM
REPRESENTATIVE BUCH inquired as to the department's position on
HB 129.
MS. WALSH stated the Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community, &
Economic Development (DCCED) is in support of HB 129. She also
added that the investigative unit is in support of the bill.
REPRESENTATIVE COGHILL referred to page 3, paragraph 10 of
HB 129, which addresses revocation of real estate licenses. He
inquired as to whether a salesperson holds a real estate
license.
MS. WALSH agreed that a salesperson holds a real estate license.
She explained that licenses are issued to a real estate broker,
an associate broker, and a salesperson.
3:27:20 PM
REPRESENTATIVE HOLMES asked if MS. Walsh could explain the
differences between the licensees.
MS. WALSH explained that the minimum qualifications for a real
estate salesperson is to acquire 40 hours of pre-licensing, pass
an examination for real estate license, apply for licensure, and
pay the fees for licensure. After 24 months, the salesperson is
eligible to take a 15-hour broker upgrade training, and sit for
the real estate broker's examination. The person can become
either an associate broker or to open an office as a real estate
broker. She related that only one real estate broker is allowed
per office, and the remaining real estate brokers wishing to
work for his/her firm are associate brokers by default.
REPRESENTATIVE HOLMES related her understanding that real estate
salespersons are those persons in the field meeting with clients
and showing houses which is typically considered work as a "real
estate agent".
MS. WALSH agreed. She reiterated that all real estate
salespersons works under a broker, but only one real estate
broker is allowed per office.
3:29:36 PM
VICE CHAIR NEUMAN related his understanding that HB 129 would
add real estate salespersons to the law governing real estate
brokers and associate brokers.
MS. WALSH agreed.
3:29:53 PM
REPRESENTATIVE COGHILL inquired as to why the real estate
salesperson is currently being added. He further inquired as to
whether this is a new licensee, or the reason that this licensee
was not previously covered under the law.
MR. CLARK offered that he believes that not including real
estate salespersons was an inadvertent oversight. He explained
that the statutes governing real estate underwent a major
revision in mid-90s. He explained that the type of licensees
for the profession has not changed. He stressed that the AAR
want to add real estate salespersons to the statutes so that the
licensees can have their licenses revoked under the
circumstances Representative Ramras mentioned earlier.
3:31:15 PM
MR. CLARK, in response to Vice Chair Neuman, explained that the
real estate professional starts as a salesperson, formerly
called a real estate agent, and when he/she can qualify, the
person can take a test to become an associate broker. Once the
person is an associate broker, he/she can open a real estate
office. However, all licensees must operate under a real estate
broker, he said.
3:31:49 PM
VICE CHAIR NEUMAN, after first determining no one wished to
testify, closed public testimony on HB 129.
3:32:13 PM
REPRESENTATIVE COGHILL moved to report HB 129 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HB 129 was reported from the
House Labor and Commerce Standing Committee.
3:32:46 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:32 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01_HB129_ver_A.pdf |
HL&C 3/2/2009 3:15:00 PM |
HB 129 |
| 02_HB129_Sponsor_Statement.pdf |
HL&C 3/2/2009 3:15:00 PM |
HB 129 |
| 03_HB129_Letter_of_Support_AK_Real_Estate_Commission.pdf |
HL&C 3/2/2009 3:15:00 PM |
HB 129 |
| 04 HB129-CED-CBPL-02-26-09.pdf |
HL&C 3/2/2009 3:15:00 PM |
HB 129 |