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
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        February 6, 2012                                                                                        
                           3:23 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Craig Johnson, Vice Chair                                                                                        
Representative Mike Chenault                                                                                                    
Representative Steve Thompson                                                                                                   
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Dan Saddler                                                                                                      
Representative Bob Miller                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 92(FIN)                                                                                
"An Act relating to dental hygienists, dentists, dental                                                                         
assistants, dental hygiene, and dentistry."                                                                                     
                                                                                                                                
     - MOVED HCS CSSB 92(L&C) OUT OF COMMITTEE                                                                                  
                                                                                                                                
HOUSE BILL NO. 267                                                                                                              
"An Act relating to the Real Estate Commission; and providing                                                                   
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED CSHB 267(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 92                                                                                                                   
SHORT TITLE: DENTISTS/DENTAL HYGIENISTS/ASSISTANTS                                                                              
SPONSOR(s): SENATOR(s) EGAN                                                                                                     
                                                                                                                                
02/21/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/11       (S)       L&C, FIN                                                                                               
02/24/11       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/24/11       (S)       Heard & Held                                                                                           
02/24/11       (S)       MINUTE(L&C)                                                                                            
03/01/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
03/01/11       (S)       Moved CSSB  92(L&C) Out of Committee                                                                   
03/01/11       (S)       MINUTE(L&C)                                                                                            
03/07/11       (S)       L&C RPT CS  3DP    SAME TITLE                                                                          
03/07/11       (S)       DP: EGAN, DAVIS, PASKVAN                                                                               
03/30/11       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/30/11       (S)       Heard & Held                                                                                           
03/30/11       (S)       MINUTE(FIN)                                                                                            
04/04/11       (S)       FIN RPT CS  6DP 1NR    SAME TITLE                                                                      
04/04/11       (S)       DP: HOFFMAN, STEDMAN, THOMAS, EGAN,                                                                    
                         MCGUIRE, ELLIS                                                                                         
04/04/11       (S)       NR: OLSON                                                                                              
04/04/11       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/04/11       (S)       Moved CSSB 92(FIN) Out of Committee                                                                    
04/04/11       (S)       MINUTE(FIN)                                                                                            
04/07/11       (S)       TRANSMITTED TO (H)                                                                                     
04/07/11       (S)       VERSION: CSSB 92(FIN)                                                                                  
04/08/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/08/11       (H)       L&C, FIN                                                                                               
01/27/12       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/27/12       (H)       Heard & Held                                                                                           
01/27/12       (H)       MINUTE(L&C)                                                                                            
02/06/12       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 267                                                                                                                  
SHORT TITLE: REAL ESTATE SALES LICENSEES                                                                                        
SPONSOR(s): REPRESENTATIVE(s) MUNOZ, OLSON                                                                                      
                                                                                                                                
01/17/12       (H)       PREFILE RELEASED 1/13/12                                                                               
01/17/12       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/17/12       (H)       L&C                                                                                                    
02/06/12       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DANA OWEN, Staff                                                                                                                
Senate Labor & Commerce Committee, Senator Dennis Egan, Chair                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of Senator Dennis Egan,                                                              
Chair, Senate Labor & Commerce Committee, during the discussion                                                                 
of SB 92.                                                                                                                       
                                                                                                                                
REPRESENTATIVE CATHY MUNOZ                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 267 as prime sponsor of the                                                                 
bill.                                                                                                                           
                                                                                                                                
ERROL CHAMPION, President                                                                                                       
Southeast Alaska Board of Realtors;                                                                                             
Member, Board of Directors                                                                                                      
Alaska Association of Realtors                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 267.                                                               
                                                                                                                                
DON HABEGER, Director                                                                                                           
Division of Corporations, Business, and Professional Licensing                                                                  
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED)                                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided  information and answered questions                                                             
during the discussion of HB 267.                                                                                                
                                                                                                                                
KONRAD JACKSON, Staff                                                                                                           
Representative Kurt Olson                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Explained the  amendment to HB 267 on behalf                                                             
of the prime bill sponsor, Representative Kurt Olson.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:23:24 PM                                                                                                                    
                                                                                                                                
CHAIR KURT  OLSON called  the House  Labor and  Commerce Standing                                                             
Committee  meeting  to  order  at   3:23  p.m.    Representatives                                                               
Johnson, Thompson, Holmes, and Olson  were present at the call to                                                               
order.   Representative Chenault  arrived as  the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
3:23:41 PM                                                                                                                    
                                                                                                                                
          SB 92-DENTISTS/DENTAL HYGIENISTS/ASSISTANTS                                                                       
                                                                                                                              
3:23:48 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
CS  FOR SENATE  BILL  NO.  92(FIN), "An  Act  relating to  dental                                                               
hygienists,  dentists,  dental  assistants, dental  hygiene,  and                                                               
dentistry."                                                                                                                     
                                                                                                                                
CHAIR  OLSON  stated that  this  bill  was previously  heard  and                                                               
public testimony is  closed.  He reported that the  bill had been                                                               
held in  committee to  obtain clarification  on the  repealers in                                                               
the bill.  He said he was satisfied that everything is in order.                                                                
                                                                                                                                
3:24:52 PM                                                                                                                    
                                                                                                                                
DANA OWEN,  Staff, introduced himself  and said he  was available                                                               
for questions.                                                                                                                  
                                                                                                                                
REPRESENTATIVE HOLMES asked for  clarification that the committee                                                               
previously adopted two amendments to SB 92.                                                                                     
                                                                                                                                
CHAIR OLSON answered yes.                                                                                                       
                                                                                                                                
3:25:35 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:25 p.m. to 3:28 p.m.                                                                       
                                                                                                                                
3:28:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLMES  moved to report CSSB  92(FIN), as amended,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying  fiscal notes.  There  being no  objection, the  HCS                                                               
CSSB  92(L&C)  was  reported  from the  House  Labor  &  Commerce                                                               
Standing Committee.                                                                                                             
                                                                                                                                
The committee took an at-ease from 3:28 p.m. to 3:30 p.m.                                                                       
                                                                                                                                
               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.                                                                  
                                                                                                                                
3:43:35 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
3:43 p.m.                                                                                                                       

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