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