CSHB 33(FIN) AM: "An Act relating to real estate licensees and to the real estate surety fund; relating to the Real Estate Commission; and providing for an effective date."
00CS FOR HOUSE BILL NO. 33(FIN) am 01 "An Act relating to real estate licensees and to the real estate surety fund; 02 relating to the Real Estate Commission; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.67.010 is amended to read: 05 Sec. 08.67.010. Registration of mobile home dealers. A mobile home dealer 06 may not do business in the state unless the dealer is registered with the department. 07 However, a person licensed under AS 08.88 may, without registering under this 08 chapter, perform the same activities with respect to mobile homes, except for 09 property management, as are authorized for that person to perform under 10 AS 08.88 with respect to real estate. 11 * Sec. 2. AS 08.88.051(c) is amended to read: 12 (c) The commission shall elect its officers at the first meeting of each fiscal 13 year . 14 * Sec. 3. AS 08.88.061 is amended to read:
01 Sec. 08.88.061. Assistants. Notwithstanding contrary provisions of 02 AS 08.01.050, the [THE] commission may assign or designate [USE] assistants to 03 (1) issue licenses to applicants who meet the qualifications for 04 licensure established under this chapter; 05 (2) prepare questions on examinations; 06 (3) administer and [(2)] grade examinations ; 07 (4) certify courses required under this chapter; 08 (5) approve instructors to teach courses required under this 09 chapter; and 10 (6) negotiate terms for payment of fines and other money due 11 under this chapter . 12 * Sec. 4. AS 08.88.071 is amended to read: 13 Sec. 08.88.071. Duties of the commission. (a) The commission shall 14 (1) determine whether [PASS ON QUALIFICATIONS OF] applicants 15 meet requirements for licenses under this chapter and issue licenses to those who 16 qualify; 17 (2) prepare and grade examinations; 18 (3) after hearing, have the authority to suspend or revoke the license 19 of a licensee or impose other disciplinary sanctions authorized under AS 08.01.075 20 on a licensee who 21 (A) with respect to a real estate transaction 22 (i) made a substantial misrepresentation; 23 (ii) made a false promise likely to influence, persuade, 24 or induce; 25 (iii) in the case of a real estate broker, pursued a 26 flagrant course of misrepresentation or made a false promise through 27 another [AN AGENT, ASSOCIATE REAL ESTATE BROKER, OR] 28 real estate licensee [SALESMAN]; 29 (iv) has engaged in conduct that is fraudulent or 30 dishonest; 31 (v) violates AS 08.88.391;
01 (B) procures a license by deceiving the commission, or aids 02 another to do so; 03 (C) has engaged in conduct of [IN] which the commission had 04 no knowledge at the time the licensee was licensed demonstrating the licensee's 05 unfitness to engage in the business for which the licensee is licensed; 06 (D) knowingly authorizes, directs, connives at or aids in 07 publishing, distributing, or circulating a material false statement or 08 misrepresentation concerning the licensee's business or concerning real estate 09 offered for sale , rent, or lease, or managed in the course of the licensee's 10 business in this or any other state or concerning the management of an 11 association in the course of a licensee's business in this or another state ; 12 (E) if a real estate broker, wilfully violates AS 08.88.171(d) or 13 08.88.291; 14 (F) if an associate real estate broker, claims to be a real estate 15 broker, or, if a real estate salesperson [SALESMAN], claims to be a real estate 16 broker or associate real estate broker; 17 (G) if a real estate broker, employs an unlicensed person to 18 perform activities for which a real estate license is required [ASSOCIATE 19 REAL ESTATE BROKER OR REAL ESTATE SALESMAN]; 20 (H) if an employed real estate licensee of a [ASSOCIATE] 21 real estate broker [OR REAL ESTATE SALESMAN], fails immediately to turn 22 money or other property collected in a real estate transaction over to the 23 employing real estate broker; 24 (4) prosecute, through the Department of Law, violations of the 25 provisions of this chapter or lawful regulations adopted under this chapter; 26 (5) release for publication [PUBLISH, ON THREE CONSECUTIVE 27 WEEKENDS] in a newspaper of general circulation in the locale of the offending 28 person's principal office registered with the commission notice of [LICENSED 29 UNDER THIS CHAPTER,] disciplinary action taken by the commission against a 30 person licensed under this chapter; 31 (6) issue a temporary permit to the personal representative of the estate
01 of a deceased real estate broker or to another [SOME OTHER] person designated by 02 the commission with the approval of the personal representative of the estate in order 03 to secure proper administration in concluding the affairs of the decedent broker's real 04 estate business; 05 (7) issue a temporary permit to the personal representative of a 06 legally incompetent real estate broker or to another person designated by the 07 commission with the approval of the personal representative of the broker in 08 order to secure proper administration in temporarily managing the real estate 09 business of the broker; 10 (8) establish and periodically revise the form of the seller's property 11 disclosure statement required by AS 34.70.010 ; 12 (9) have the authority to levy civil fines as established in this 13 chapter; 14 (10) revoke the license of a broker or associate broker who is 15 convicted of forgery, theft, extortion, conspiracy to defraud creditors, or a felony 16 involving moral turpitude committed while licensed under this chapter; 17 notwithstanding AS 08.88.171, a person whose license is revoked under this 18 paragraph is not qualified for a license under AS 08.88.171(a) or (b) until seven 19 years have elapsed since the person completed the sentence imposed for the 20 conviction . 21 (b) When an award is made from the real estate surety fund under this chapter 22 [IN REIMBURSEMENT OF LOSSES SUFFERED BY A CLAIMANT AS A 23 RESULT OF FRAUD, MISREPRESENTATION, DECEIT, OR CONVERSION OF 24 TRUST FUNDS ON THE PART OF A LICENSED BROKER, ASSOCIATE 25 BROKER, OR SALESMAN], the commission may suspend [CONSIDER THE 26 HEARING ON THE CLAIM TO BE A HEARING ON THE SUSPENSION OF] the 27 license of the real estate licensee whose actions formed the basis of the award 28 [BROKER, ASSOCIATE BROKER, OR SALESMAN, AND MAY SUSPEND THE 29 LICENSE OF THE BROKER, ASSOCIATE BROKER, OR SALESMAN]. A 30 suspension ordered under this subsection shall be lifted if the licensee [BROKER, 31 ASSOCIATE BROKER, OR SALESMAN] reaches an agreement with the commission
01 on terms and conditions for the repayment to the real estate surety fund of the money 02 awarded to the claimant and the costs of hearing the claim under AS 08.88.465. The 03 suspension shall be reimposed if the licensee [BROKER, ASSOCIATE BROKER, OR 04 SALESMAN] violates the terms of a repayment agreement entered into under this 05 subsection. 06 (c) For the purposes of (a)(3) of this section, the conduct of an employee is 07 [NOT] attributable to a real estate broker if [UNLESS] the real estate broker has actual 08 knowledge that the employee is going to engage in the conduct and agrees to the 09 conduct, either actively or by remaining silent, or ratifies the conduct after it is 10 engaged in. 11 * Sec. 5. AS 08.88.091(d) is amended to read: 12 (d) A person who is licensed under this chapter must complete 20 hours of 13 continuing education approved by the commission before the person's license may be 14 renewed. The commission may not establish limits that prevent a person from 15 satisfying this continuing education requirement within a two-day period. 16 * Sec. 6. AS 08.88.091(e) is amended to read: 17 (e) Except for a course described in (f)(1) or (3) of this section, in order 18 for an educational course to be recognized for credit under this section, [THE 19 COMMISSION MAY NOT APPROVE AN EDUCATION OR CONTINUING 20 EDUCATION COURSE REQUIRED UNDER THIS SECTION UNLESS THE 21 COMMISSION CERTIFIES] the course outline and [APPROVES] the instructor of the 22 course must have been approved by the commission or the commission's designee 23 before the course was [IS] conducted. A course outline or instructor is considered 24 approved if the commission or the commission's designee does not disapprove the 25 outline or instructor within 45 days after the date on which complete application 26 was made for approval. Each approved contact hour of a submitted course 27 outline constitutes one credit hour of continuing education. The fee for continuing 28 education course certification under AS 08.88.221 shall be based on the hours 29 approved for credit not hours submitted. 30 * Sec. 7. AS 08.88.091 is amended by adding new subsections to read: 31 (f) The commission shall establish by regulation the educational and continuing
01 educational requirements for licenses issued by the commission. The regulations for 02 continuing education requirements must allow the following types of courses to qualify 03 for the appropriate number of credit hours, as determined by the commission: 04 (1) courses that are developed by national organizations, as identified 05 for the purpose of this paragraph in the commission's regulations, that are delivered by 06 nationally certified instructors and that are required in order to earn professional 07 designations from a national organization in specialized areas of licensed real estate 08 practice; notwithstanding other provisions of this chapter, the commission may not 09 charge a fee for these courses; 10 (2) technology courses directly related to real estate practice that are 11 designed to enhance the skills and performance of a real estate licensee; and 12 (3) courses offered by an accredited college or university as part of a 13 real estate curriculum that are available for at least one quarter-hour or one-half 14 semester-hour of academic credit; the commission may not charge a fee for these 15 courses. 16 (g) The commission shall establish core curricula for continuing education in 17 the following areas: real estate sales, property management, community association 18 management, and commercial sales. A licensee shall complete at least one of the four 19 core curricula during each biennial licensing period as part of the licensee's continuing 20 education. 21 * Sec. 8. AS 08.88.161 is amended to read: 22 Sec. 08.88.161. License required. Unless licensed as a real estate broker, 23 associate real estate broker, or real estate salesperson in this state [SALESMAN], a 24 [NATURAL] person [, FOREIGN OR DOMESTIC CORPORATION, OR 25 PARTNERSHIP, OR LIMITED PARTNERSHIP, OR OTHER ENTITY] may not , 26 except as otherwise provided in this chapter, 27 (1) sell, exchange, rent, lease, auction, or purchase real estate; 28 (2) list real estate for sale, exchange, rent, lease, auction, or purchase; 29 (3) collect rent for the use of real estate or collect fees for property 30 management ; 31 (4) practice, or negotiate for a contract to practice, property
01 management; 02 (5) collect fees for community association management; 03 (6) practice, or negotiate for a contract to practice, community 04 association management; 05 (7) as a business, buy, sell, or deal in 06 (A) options in real estate; or 07 (B) options in improvements to real estate; 08 (8) [(5)] assist in or direct the procuring of prospective buyers and 09 sellers of real estate, communicate with prospective buyers and sellers of real 10 estate, or assist in the negotiation of a transaction that [WHICH] results or is 11 calculated to result in the sale, exchange, rent, lease, auction, or purchase of real 12 estate; 13 (9) accept or pay a fee for the performance of any of the activities 14 listed in this section except as otherwise specifically provided in this chapter; 15 (10) [(6)] hold out to the public as being engaged in the business of 16 doing any of the things listed in this section; or 17 (11) [(7)] attempt or offer to do any of the things listed in this section 18 [. 19 (8) REPEALED]. 20 * Sec. 9. AS 08.88 is amended by adding a new section to read: 21 Sec. 08.88.167. Civil penalty for unlicensed or unauthorized practice. (a) 22 In addition to penalties prescribed by any other provision of law, if a person engages 23 or offers to engage in an activity for which a license is required under AS 08.88.161 24 without being licensed or authorized to engage in the activity in accordance with the 25 provisions of this chapter, the commission may enter an order levying a civil penalty. 26 (b) A civil penalty levied under this section may not exceed $5,000, or the 27 amount of gain realized plus $5,000, whichever is greater, for each offense. In levying 28 a civil penalty, the commission shall set the amount of the penalty imposed under this 29 section after taking into account the seriousness of the violation, the economic benefit 30 resulting from the violation, the history of violations, and other facts the commission 31 considers relevant.
01 (c) Before entering an order under (a) of this section, the commission shall 02 send the person written notice of the proposed order that grants the person a 30-day 03 period during which the person may request a hearing on the record. 04 (d) In connection with proceedings under (a) - (c) of this section, the 05 commission may issue subpoenas to compel the attendance and testimony of witnesses 06 and the disclosure of evidence and may request the department to bring an action to 07 enforce a subpoena. 08 (e) A person aggrieved by the levy of a civil penalty under this section may 09 file an appeal with the superior court for judicial review of the penalty under 10 AS 44.62.560. 11 (f) If a person fails to pay a civil penalty within 30 days after entry of an order 12 under (a) of this section, or within 10 days after the court enters a final judgment in 13 favor of the commission of an order stayed pending an appeal under (e) of this section, 14 the commission may initiate other action to recover the amount of the penalty. 15 (g) An action to enforce an order under this section may be combined with an 16 action for an injunction under AS 08.88.037. 17 * Sec. 10. AS 08.88.171 is amended to read: 18 Sec. 08.88.171. Entitlement to license. (a) A natural person qualifies [IS 19 ELIGIBLE] for a real estate broker license if the person passes the [REAL ESTATE] 20 brokers examination , [IF THE PERSON] applies for a license within six months after 21 passing the [PERSON HAS TAKEN THE REAL ESTATE BROKERS] examination, 22 [IF THE PERSON] furnishes satisfactory proof of successful completion of the 23 education requirements of AS 08.88.091, [IF THE PERSON] has had at least 24 24 months of active and continuous experience as a licensed real estate salesperson 25 within the 36 months immediately preceding application for the broker license, 26 [SALESMAN, IF THE PERSON] is not under indictment for, or seven years have 27 elapsed since the person has completed a sentence imposed upon conviction of, 28 forgery, theft, extortion, conspiracy to defraud creditors, or any other felony involving 29 moral turpitude, and [IF THE PERSON] is an owner of a real estate business or 30 employed as a real estate broker by a foreign or domestic corporation , [OR A] 31 partnership, limited partnership, or limited liability company [AND IF THAT
01 CORPORATION OR PARTNERSHIP DOES NOT HAVE AN EXISTING 02 LICENSED BROKER]. Unless the broker fails to renew the license [PAY THE 03 BIENNIAL RENEWAL FEE] or unless the broker's license is suspended or revoked 04 [UNDER AS 08.88.071(a)(3)], the [REAL ESTATE] broker's license continues in 05 effect as [SO] long as the broker's license is active [BROKER IS AN OWNER OF 06 A REAL ESTATE BUSINESS, OR THE BROKER IS EMPLOYED AS A REAL 07 ESTATE BROKER BY A CORPORATION OR A PARTNERSHIP]. If the broker 08 stops being an owner of a real estate business [,] or stops being employed as a real 09 estate broker by a foreign or domestic corporation , [OR] partnership , limited 10 partnership, or limited liability company , the broker's license is suspended from the 11 time the broker stops until 12 (1) the broker again becomes an owner of a real estate business or is 13 again employed as a real estate broker by a foreign or domestic corporation , [OR A] 14 partnership , limited partnership, or limited liability company ; or 15 (2) the broker is employed by another [A LICENSED REAL 16 ESTATE] broker as an associate [REAL ESTATE] broker, in which case the real 17 estate broker license shall be [IS] returned to the commission by the broker , and the 18 commission shall issue [ISSUES] the broker an associate real estate broker license. 19 (b) A natural person qualifies [IS ELIGIBLE] for an associate real estate 20 broker license if the person passes the [REAL ESTATE] brokers examination, [IF THE 21 PERSON] applies for the [A] license within six months after passing [THE PERSON 22 HAS TAKEN] the examination, [IF THE PERSON] submits satisfactory proof of 23 successful completion of the education requirements of AS 08.88.091, [IF THE 24 PERSON] has had at least 24 months of active and continuous experience as a licensed 25 real estate salesperson within the 36 months immediately preceding application for 26 the license, [SALESMAN, IF THE PERSON] is not under indictment for, or five 27 years have elapsed since the person has completed a sentence imposed upon conviction 28 of, forgery, theft, extortion, conspiracy to defraud creditors, or any other felony 29 involving moral turpitude, and [IF THE PERSON] is employed by a licensed real 30 estate broker as an associate real estate broker. Unless the associate broker fails to 31 renew the license [PAY THE BIENNIAL RENEWAL FEE] or unless the associate
01 broker's license is suspended or revoked [UNDER AS 08.88.071(a)(3)], the associate 02 [REAL ESTATE] broker's license continues in effect as [SO] long as the associate 03 broker is employed by a licensed real estate broker as an associate broker. If the 04 associate broker stops being employed by a licensed real estate broker, the associate 05 broker's license is suspended from the time the associate broker stops until 06 (1) the associate broker again is employed by a real estate broker as an 07 associate broker; or 08 (2) the associate broker becomes an owner of a real estate business or 09 is employed as a real estate broker by a foreign or domestic corporation, 10 partnership, limited partnership, or limited liability company , in which case the 11 associate broker's [ASSOCIATE REAL ESTATE BROKER] license shall be [IS] 12 returned to the commission by the associate broker , and the commission shall issue 13 [ISSUES] the licensee [ASSOCIATE BROKER] a broker's [REAL ESTATE 14 BROKER] license. 15 (c) A natural person qualifies [IS ELIGIBLE] for a real estate salesperson 16 [SALESMAN] license if the person passes the real estate salesperson [SALESMAN] 17 examination, [IF THE PERSON] applies for the [A] license within six months after 18 passing [THE PERSON HAS TAKEN] the examination, [IF THE PERSON] submits 19 satisfactory proof of successful completion of the education requirements of 20 AS 08.88.091, [IF THE PERSON] is at least 19 years old, [IF THE PERSON] is not 21 under indictment for forgery, theft, extortion, conspiracy to defraud creditors, or any 22 other felony involving moral turpitude, or, if convicted of such an offense, the person 23 has completed the sentence imposed upon conviction, and [IF THE PERSON] is 24 employed by a real estate broker. Unless the salesperson [SALESMAN] fails to 25 renew the license [PAY THE BIENNIAL RENEWAL FEE] or unless the real estate 26 salesperson's [SALESMAN'S] license is suspended or revoked [UNDER 27 AS 08.88.071(A)(3)], a real estate salesperson's [SALESMAN'S] license continues in 28 effect as [SO] long as the salesperson [SALESMAN] is employed as a salesperson 29 [SALESMAN] by a licensed real estate broker. If the salesperson [SALESMAN] 30 stops being employed as a real estate salesperson [SALESMAN], the real estate 31 salesperson's [SALESMAN'S] license is suspended from the time the salesperson
01 [SALESMAN] stops until the salesperson [SALESMAN] again is employed as a real 02 estate salesperson [SALESMAN] by a licensed real estate broker. 03 (d) A real estate licensee shall promptly inform the commission of a change 04 in business association that affects the status of the licensee's license under this 05 section. 06 * Sec. 11. AS 08.88.171 is amended by adding new subsections to read: 07 (e) Notwithstanding (a) - (d) of this section, a natural person qualifies for a 08 limited license to practice community association management under (f) of this section 09 if the person 10 (1) applies by January 1, 1999; 11 (2) pays the required fees; 12 (3) demonstrates to the commission's satisfaction that the person has 13 engaged in the practice of community association management for at least 24 months 14 before January 1, 1999; and 15 (4) meets other requirements that may be established by the 16 commission in its regulations for issuance of a license under this subsection. 17 (f) A person who qualifies under (e) of this section shall be issued an associate 18 broker license if, at the time of issuance, the person is employed by a broker. A 19 person who qualifies under (e) of this section shall be issued a broker license if, at the 20 time of issuance, the person is the owner of a community association management 21 business or is employed as a community association manager by a foreign or domestic 22 corporation, partnership, limited partnership, or limited liability company. After initial 23 issuance of a license to a person under this subsection, the person is subject to the 24 same requirements that exist for other brokers and associate brokers licensed under this 25 chapter. However, notwithstanding other provisions of this chapter, under a license 26 issued under this subsection, a person may practice only community association 27 management and does not qualify as a broker or associate broker for purposes of 28 AS 08.88.161(1) - (4), (7), or (8) or 08.88.165(2). A person issued a limited license 29 to practice community association management under this section may not use the 30 terms "salesperson," "broker," or "associate broker" for any business purpose unless 31 the person is also licensed appropriately under other provisions of this chapter.
01 * Sec. 12. AS 08.88 is amended by adding new sections to read: 02 Sec. 08.88.173. Fidelity bond for community association managers. (a) If 03 the board of directors of a community association allows a broker to exercise control 04 over community association fees or other community association funds, the broker 05 must provide evidence to the commission that the broker is covered by a blanket 06 fidelity insurance bond. The bond may be in the name of the broker with the 07 association as an additional insured or in the name of the association with the broker 08 as an additional insured. The bond must cover the maximum funds that will be within 09 the control of the community association manager at any time while the bond is in 10 force. The commission may grant an exemption from the bonding requirement of this 11 subsection if the commission determines that the community association manager has 12 equivalent comparable coverage or that coverage is unavailable. The commission may 13 adopt regulations to implement this subsection, including regulations concerning the 14 minimum coverage and terms of coverage that are required and proof of bond and the 15 granting of exemptions. 16 (b) If a loss covered by the fidelity bond required under this section is also 17 reimbursable from the real estate surety fund, the owners' association that suffered the 18 loss may not recover under the bond until the association has filed a claim for 19 reimbursement under AS 08.88.460 and proceedings relating to the claim are 20 concluded. 21 Sec. 08.88.175. Limitations on community association managers. A 22 licensee may not, within the practice of community association management, exercise 23 control over the 24 (1) reserves or investment accounts of a community association; 25 (2) operating account of a community association unless 26 (A) allowed under a contract that has been approved by the 27 association's board of directors; and 28 (B) duplicate financial statements concerning the account are 29 sent by the institution holding the account to the licensee and the association's 30 board of directors at separate addresses. 31 * Sec. 13. AS 08.88.181(a) is amended to read:
01 (a) The real estate examinations [EXAMINATION] may include [, BUT IS 02 NOT NECESSARILY LIMITED TO,] questions on real estate business ethics and 03 standards ; arithmetic and accounting ; elementary principles of land economics and 04 appraisal; the general principles in state statutes relating to deeds, mortgages, real 05 estate contracts, subdivisions, common interest communities, legal descriptions, 06 building restrictions, agency, [AND] brokerage , disclosure requirements, trust 07 accounting requirements, and landlord and tenant law; property management 08 ethics and standards; community association management operations, ethics, and 09 standards ; and the general provisions of this chapter and of the regulations of the 10 commission. 11 * Sec. 14. AS 08.88.191(b) is amended to read: 12 (b) If the commission authorizes the department to contract with a national 13 testing service to prepare, administer , and grade examinations, 14 (1) the commission or its designee shall review the examination and 15 approve its contents; 16 (2) application for an [THE] examination [, ACCOMPANIED BY THE 17 PROPER FILING FEE,] may be transmitted by the applicant directly to the national 18 testing service ; payment of an examination fee shall be made by the applicant 19 directly to the national testing service's designated representative before the 20 examination is taken by the applicant . 21 * Sec. 15. AS 08.88.201 is amended to read: 22 Sec. 08.88.201. Reexamination. A person who fails an examination may 23 apply for a subsequent examination, but shall pay the application fee with [FOR] each 24 application. 25 * Sec. 16. AS 08.88.221 is amended to read: 26 Sec. 08.88.221. Fees. The Department of Commerce and Economic 27 Development shall set fees under AS 08.01.065 for a real estate broker, associate 28 broker, or salesperson [SALESMAN] licensee or applicant for the following: 29 (1) examination; 30 (2) [RECIPROCITY; 31 (3)] initial license;
01 (3) [(4)] renewal of an active license; 02 (4) [(5)] renewal of an inactive license; 03 (5) [(6)] amending or transferring a license; 04 (6) [(7)] publications offered by the commission; 05 (7) [(8)] seminars offered by the commission ; 06 (8) reinstatement of a lapsed license; 07 (9) changes to registered office information; 08 (10) course certification and recertification; and 09 (11) instructor approval and renewal of approval . 10 * Sec. 17. AS 08.88.241 is repealed and reenacted to read: 11 Sec. 08.88.241. Reinstatement of lapsed license. (a) A person whose real 12 estate license has lapsed less than 24 months is eligible for reinstatement of the license 13 if the person provides the required application, license fees, proof of continuing 14 education as required by AS 08.88.091 for licensing periods during which the license 15 was inactive or lapsed. 16 (b) A real estate licensee whose license has been lapsed for more than 24 17 months is not eligible for reinstatement of the license and is eligible for the license 18 only by meeting the qualifications applicable to initial licensure under AS 08.88.171. 19 * Sec. 18. AS 08.88.251 is amended to read: 20 Sec. 08.88.251. Inactive license. (a) A real estate licensee who intends to 21 [PERSON LICENSED BY THE COMMISSION MAY] become inactive shall return 22 [BY RETURNING] to the commission the person's license certificate and a completed 23 inactivation form provided by the commission along with any applicable fees . [IN 24 THE FORM, THE PERSON SHALL STATE THE DATE ON WHICH THE PERSON 25 INTENDS TO BECOME INACTIVE. THE PERSON'S INACTIVE STATUS 26 BEGINS ON THE DATE STATED.] The commission shall issue the person an 27 inactive license certificate. 28 (b) An inactive licensee may not attempt or offer to do any of the activities 29 listed in AS 08.88.161, but may receive commissions or other payments from the 30 broker who previously contracted with or employed the licensee for services 31 performed while actively licensed [EXCEPT AS OTHERWISE ALLOWED FOR
01 UNLICENSED PERSONS UNDER AS 08.88.165]. 02 (c) A person who has an [IS] inactive license certificate under (a) of this 03 section may reactivate the license [BECOME ACTIVE] by applying for an active 04 license and paying the required fees. [IN THE APPLICATION FORM THE PERSON 05 SHALL STATE THE DATE ON WHICH THE PERSON INTENDS TO BECOME 06 ACTIVE. THE PERSON'S ACTIVE STATUS BEGINS ON THE DATE STATED. 07 THE COMMISSION SHALL SEND THE PERSON A LICENSE CERTIFICATE.] 08 A person is eligible for change from an inactive to an active status under this 09 subsection only [WITHOUT EXAMINATION] if the person has [NOT] been in 10 inactive status for less [MORE] than 24 months [TWO YEARS]. If the person has 11 been in inactive status for 24 months or for more than 24 months [TWO YEARS], 12 the person is required to meet the requirements for initial licensure in order to be 13 licensed under this chapter again [TAKE AN EXAMINATION]. 14 * Sec. 19. AS 08.88.281 is amended to read: 15 Sec. 08.88.281. Real estate surety fund. Before issuing a license to an 16 applicant under this chapter, the commission shall ensure [DETERMINE] that the 17 applicant has complied with the provisions of AS 08.88.455 and is covered by the real 18 estate surety fund established in AS 08.88.450. 19 * Sec. 20. AS 08.88.291 is amended to read: 20 Sec. 08.88.291. Location. A person licensed as a real estate broker shall , by 21 registering with the commission, inform the commission of the person's 22 [BROKER'S] principal office and of any branch offices of the person's real estate 23 business and include in the information the names of the real estate licensees who 24 are employed at each office. A [BROKER HAS. THE BROKER AND THE 25 ASSOCIATE] real estate licensee [BROKERS AND REAL ESTATE SALESMEN 26 THE BROKER EMPLOYS] may do real estate business only through a [IN OR OUT 27 OF THE BROKER'S] principal office or from a [AND THE BROKER'S] branch 28 office registered by the broker by whom the licensee is employed [OFFICES]. 29 Failure of a real estate broker to maintain a place of business or to inform the 30 commission of its location and the names and addresses of all real estate licensees 31 employed at each location by the broker is [UNDER THE BROKER'S
01 JURISDICTION AT THE LOCATION ARE] grounds for the suspension or revocation 02 of the broker's license. 03 * Sec. 21. AS 08.88.301 is amended to read: 04 Sec. 08.88.301. Change of location. Before [IF] a real estate broker changes 05 the location of the broker's principal office or of a branch office, the broker shall 06 [IMMEDIATELY] notify the commission of the new address and any other office 07 changes on a form provided by the commission and pay the applicable fees . 08 * Sec. 22. AS 08.88.311 is amended to read: 09 Sec. 08.88.311. Branch offices. (a) A branch office shall be under the direct 10 supervision of a real estate associate broker whose principal place of business is that 11 office and who is licensed under this chapter. An associate [REAL ESTATE] broker 12 may serve in the capacity of direct supervisor at only one office [ONLY]. 13 (b) A [ALL] branch office [OFFICES] shall bear and be advertised only in the 14 name of the principal office but may also indicate that it is a [THEY ARE] branch 15 [OFFICES OF THE PRINCIPAL] office. 16 * Sec. 23. AS 08.88.321 is repealed and reenacted to read: 17 Sec. 08.88.321. Possession and display of license certificates. (a) The 18 license certificate of a real estate broker shall be displayed in the broker's principal 19 office. 20 (b) The license certificate of each licensee working in the broker's principal 21 office shall be displayed in that office. 22 (c) The license certificate of the designated associate broker who is in charge 23 of a branch office and the certificate of each licensee working in a branch office shall 24 be displayed in the branch office indicated as the office of the licensees' employment 25 in the registration required under AS 08.88.291. 26 (d) Certificates displayed under this section must be displayed where they are 27 available for public clients and customers to verify the current active status of licensees 28 working in the office. 29 * Sec. 24. AS 08.88.331 is amended to read: 30 Sec. 08.88.331. Making of transactions. An active [A] real estate 31 salesperson [SALESMAN] or associate real estate broker may perform activities for
01 which a real estate license is required [MAKE A REAL ESTATE TRANSACTION] 02 only through the real estate broker who employs or contracts with the licensee 03 [REAL ESTATE SALESMAN OR ASSOCIATE REAL ESTATE BROKER]. All 04 money or other proceeds collected in trust and related to a real estate transaction 05 [ON BEHALF OF THE BROKER] shall immediately be turned over to the broker or 06 the broker's authorized representative [AGENT. ALL TRANSACTIONS IN REAL 07 ESTATE BY A REAL ESTATE SALESMAN OR ASSOCIATE REAL ESTATE 08 BROKER SHALL BE PROCESSED THROUGH THE REAL ESTATE 09 SALESMAN'S OR THE ASSOCIATE REAL ESTATE BROKER'S EMPLOYING 10 REAL ESTATE BROKER'S OFFICE, WHETHER THE TRANSACTIONS ARE FOR 11 THE REAL ESTATE SALESMAN'S OR ASSOCIATE REAL ESTATE BROKER'S 12 OWN USE OR THE USE OF A CLIENT]. 13 * Sec. 25. AS 08.88.341 is amended to read: 14 Sec. 08.88.341. Listings or management contracts . All real estate listings 15 or management contracts must be in writing and must be signed by the broker 16 [SELLER] or associated licensee [BY AN AGENT] of the broker and by the client 17 or an authorized representative of the client for whose benefit the real estate 18 licensee will act [SELLER]. All real estate exclusive listings or management 19 contracts must have a definite expiration date that may be renewed or extended 20 only by a written agreement signed by the client or the client's authorized 21 representative . 22 * Sec. 26. AS 08.88.351 is amended to read: 23 Sec. 08.88.351. Accounts; records of transactions [RECORD OF 24 TRANSACTION]. A real estate broker shall 25 (1) keep a complete record , [OF ALL REAL ESTATE 26 TRANSACTIONS MADE BY THE BROKER OR EMPLOYEES OF THE BROKER] 27 for [AT LEAST] three years , of all real estate transactions in which the broker or 28 employed licensees of the broker engaged ; 29 (2) provide upon request to any principal in a transaction an 30 [MAKE A CLOSING STATEMENT SHOWING DISBURSEMENTS AND] 31 accounting for all money or other property collected or held in the course of each
01 transaction; 02 (3) keep a separate trust account in a bank [,] into which the broker 03 shall deposit all earnest money deposits , [AND] purchase money , security deposits, 04 contingency funds, collected rental money, rental receipts, or other money 05 collected in trust until it is appropriate [PROPER] for the broker to distribute the 06 money to the proper persons; 07 (4) if authorized by the board of directors of a community 08 association to collect, control, or disburse association funds, keep a separate 09 account in a financial institution for the funds; 10 (5) make available to the commission, on request, account records and 11 all other documents [RELATING TO TRANSACTIONS UNDER (3) OF THIS 12 SECTION] that the commission may require in order to conduct an investigation or 13 to [A COMPLETE] audit an account required under this section; 14 (6) if records are delivered to a partnership, corporation, or 15 business entity other than another licensed broker upon termination of 16 employment, ensure by contract the maintenance and availability of those records 17 for a minimum of three years in accordance with this section [OF TRUST 18 ACCOUNTS]. 19 * Sec. 27. AS 08.88.351 is amended by adding new subsections to read: 20 (b) A real estate licensee 21 (1) shall keep, for a minimum of three years, a complete record of all 22 real estate transactions in which the licensee was a principal; 23 (2) who maintains records concerning management or sale of the 24 licensee's own properties or the licensee's client properties separate from the broker's 25 file, shall retain those records for a minimum of three years; 26 (3) shall make available to the commission, on request, records and 27 other documents that the commission may require to conduct an investigation; 28 (4) shall promptly deposit community association funds or proceeds 29 from periodic community association assessments into either a community association 30 reserve account or a community association operating account; if, at any time, the 31 community association operating account contains more money than is estimated to be
01 needed for budgeted expenditures for the subsequent three months, the licensee shall 02 transfer the excess funds to the community association reserve account as soon as 03 practicable; 04 (5) may not commingle funds of a community association with funds 05 of another community association or with the licensee's funds. 06 (c) For the purposes of this section, the three-year requirement for records 07 maintenance begins at the initiation of a transaction and continues, as applicable, until 08 three years after the date 09 (1) a listing agreement ends; 10 (2) a sales transaction closes or otherwise ends; 11 (3) a management contract ends; or 12 (4) another contractual or fiduciary obligation ends. 13 * Sec. 28. AS 08.88.381 is amended to read: 14 Sec. 08.88.381. Signs. A [LICENSED] real estate broker shall maintain a sign 15 at each of the [REAL ESTATE] broker's registered real estate offices [,] prominently 16 showing the name of the real estate [BROKER'S] business as registered with the 17 commission. The required size, content, and location of signs under this section 18 may be determined by the commission under regulations. The regulations must 19 allow signs in offices located on premises with more restrictive sign requirements 20 than would otherwise be applicable under the commission's regulations to be 21 considered to be in compliance with the regulations if the signs meet the 22 requirements of the premises and the licensee submits a copy of the sign 23 requirements of the premises to the commission . 24 * Sec. 29. AS 08.88.391 is amended to read: 25 Sec. 08.88.391. Conflict of interest. A [LICENSED] real estate licensee 26 [BROKER, ASSOCIATE REAL ESTATE BROKER, OR REAL ESTATE 27 SALESMAN] who has a conflict of interest relating to [PERSONAL FINANCIAL 28 INTEREST IN] a real estate transaction shall disclose that conflict of interest at the 29 time of initial substantive contact with the principals or agents of the principals 30 and confirm the conflict of interest in writing to the principals or agents of the 31 principals [EVERY PERSON] involved in the transaction as soon as possible after
01 the initial substantive contact . 02 * Sec. 30. AS 08.88.391 is amended by adding new subsections to read: 03 (b) The failure of a licensee to disclose a conflict of interest as required under 04 this section does not give rise to a cause of action by a private person. However, the 05 commission may, under AS 08.88.071, impose a disciplinary sanction for violation of 06 this section, and a claim may be filed by a private person under AS 08.88.460 if the 07 violation constituted fraud, misrepresentation, or deceit and the person suffered a loss 08 as a result of the violation. 09 (c) In this section, "conflict of interest" is when a licensee 10 (1) has a present ownership or leasehold interest in the property that 11 is the subject of a transaction; 12 (2) is whole or part owner of a business interest in the property being 13 marketed or considered for purchase or lease; 14 (3) represents a relative, as defined in AS 08.88.900(19), or a person 15 with whom the licensee has a financial relationship if the relative or person has a 16 present financial interest in the property being marketed or considered for purchase or 17 lease; 18 (4) receives compensation from someone other than a party to the 19 contract or another party having a financial interest in the transaction; or 20 (5) receives compensation for community association management 21 while simultaneously engaged as a property manager for a unit within the community 22 association. 23 * Sec. 31. AS 08.88.396 is amended to read: 24 Sec. 08.88.396. Disclosure of agency to prospective buyers and sellers . (a) 25 A person licensed [HOLDING A LICENSE] under this chapter shall, when acting as 26 an agent for a prospective seller of real estate, 27 (1) disclose in writing the licensee's [PERSON'S] agency relationship 28 with the seller to each prospective buyer at the time that the licensee [PERSON] 29 begins to provide specific assistance to locate or acquire real estate for the buyer, and 30 obtain from each prospective buyer a signed acknowledgement that the buyer is aware 31 of the agency relationship between the licensee [PERSON LICENSED UNDER THIS
01 CHAPTER] and the seller; and 02 (2) include in the purchase agreement a statement of the agency 03 relationship between the licensee [PERSON LICENSED UNDER THIS CHAPTER] 04 and the seller. 05 (b) A person licensed [HOLDING A LICENSE] under this chapter shall, when 06 acting as an agent for a prospective buyer of real estate, 07 (1) disclose the licensee's [PERSON'S] relationship with the buyer to 08 a prospective seller of real estate, or to the seller's agent, at the time of the initial 09 contact between the licensee [PERSON LICENSED UNDER THIS CHAPTER] and 10 the prospective seller or the seller's agent, and confirm the relationship in writing as 11 soon as possible after the initial contact; 12 (2) include in the purchase agreement a statement of the agency 13 relationship between the licensee [PERSON LICENSED UNDER THIS CHAPTER] 14 and the buyer; 15 (3) if the prospective seller has an unexpired exclusive listing contract 16 for a property, present all offers [AN OFFER] to purchase that property through [TO] 17 the seller's agent; and 18 (4) disclose in writing to all parties to a transaction when the licensee's 19 [PERSON'S] compensation as agent for the buyer is to be paid by anyone other than 20 the buyer being represented by the licensee [PERSON]. 21 (c) A person licensed under this chapter may [NOT] act as an agent for both 22 a prospective seller and a prospective buyer of real estate only after [UNLESS] the 23 licensee [PERSON] informs both the seller and the buyer of the dual agency and 24 obtains written consent to the dual [JOINT] agency from both principals . 25 (d) When a change occurs during a transaction that makes a prior written 26 disclosure required by this section incomplete, misleading, or inaccurate, the licensee 27 [PERSON LICENSED UNDER THIS CHAPTER] shall make a revised disclosure, in 28 writing, to all parties to the transaction as soon as possible. The revised disclosure 29 must include the date of the revision and shall be acknowledged in writing by all the 30 parties. 31 * Sec. 32. AS 08.88 is amended by adding a new section to read:
01 Sec. 08.88.398. Licensed assistants. A licensed real estate salesperson or 02 licensed associate real estate broker may act as a licensed assistant to a real estate 03 licensee other than the broker who employs the salesperson or associate broker if 04 (1) the employment arrangement between the licensed assistant and the 05 other licensee is in writing and conforms to the applicable state and federal regulations 06 regarding employment; 07 (2) the employment of the licensed assistant is approved in writing by 08 the broker of the licensee who employs the assistant; 09 (3) the licensee who employs the assistant agrees to be responsible for 10 paying the licensed assistant's wages and appropriate taxes and completing the 11 appropriate state and federal tax forms; 12 (4) the broker of the licensee who employs the assistant agrees to be 13 liable for the actions of the licensed assistant. 14 * Sec. 33. AS 08.88.401 is amended to read: 15 Sec. 08.88.401. Prohibited conduct. (a) A person licensed under this chapter 16 may not falsely represent to 17 (1) have been awarded a degree or other designation ; 18 (2) [OR TO] be a member or an affiliate of a professional organization ; 19 or 20 (3) be a member of a franchise or other business association . 21 (b) A person 22 (1) who is not a real estate broker licensed in this state may not accept 23 a fee or a commission for performance of an act for which a license is required by this 24 chapter except that a real estate broker validly licensed in another state may accept a 25 fee or commission or a portion of a fee or commission for assisting a real estate broker 26 licensed in this state in the performance of an act for which a license is required by 27 this chapter; 28 (2) who is an associate broker or a real estate salesperson 29 [SALESMAN] licensed in this state may [NOT] accept a fee or commission for 30 performance of an act for which a license is required by this chapter only from 31 [UNLESS ACCEPTANCE IS AUTHORIZED BY] the licensee's employing broker ,
01 except that the wages of a person who is engaged as a licensed assistant under 02 AS 08.88.398 may be accepted by the person from the assistant's employer [WHO 03 EMPLOYS THE SALESMAN]. 04 (c) A person licensed under this chapter may not knowingly make, authorize, 05 direct, or aid in the publication of a false statement or misrepresentation concerning 06 land or a subdivision or other real estate offered for sale , [OR] lease , or rent or 07 concerning an association being managed . 08 (d) A person who violates [A PROVISION OF] this section, AS 08.88.161, 09 or 08.88.396 is guilty of a class A misdemeanor. 10 * Sec. 34. AS 08.88.401 is amended by adding new subsections to read: 11 (e) A person licensed under this chapter may not knowingly pay any part of 12 a fee, commission, or other compensation received by the licensee in buying, selling, 13 exchanging, leasing, auctioning, or renting real estate to 14 (1) a person who is not licensed under this chapter, except as provided 15 in (f) of this section; 16 (2) another licensee, except through the licensee's responsible broker; 17 or 18 (3) another licensee knowing that the other licensee intends to pay all 19 or a portion of that which is received to a person who is not licensed under this 20 chapter. 21 (f) The prohibition of (e)(1) of this section does not prohibit 22 (1) payments by a licensee to a person licensed to perform real estate 23 activities in another jurisdiction if the other person has assisted the licensee in the 24 performance of an act for which a license is required by this chapter; or 25 (2) payments from a real estate licensee to a principal as part of the 26 resolution of a dispute regarding the terms of a transaction or regarding the property 27 transferred. 28 (g) A person may not 29 (1) use or attempt to use a license issued under this chapter that was 30 issued to another person; 31 (2) give false or forged evidence to the commission or to a
01 representative of the commission in an attempt to obtain a license; 02 (3) impersonate an applicant under this chapter; 03 (4) knowingly use or attempt to use an expired, suspended, revoked, 04 or nonexistent license; or 05 (5) falsely claim to be licensed and authorized to practice under this 06 chapter. 07 * Sec. 35. AS 08.88.450 is amended to read: 08 Sec. 08.88.450. Real estate surety fund. The real estate surety fund is 09 established in the general fund to carry out the purposes of AS 08.88.450 - 08.88.500. 10 The fund is composed of payments made by [LICENSED] real estate licensees 11 [BROKERS AND SALESMEN] under AS 08.88.455 and filing fees retained under 12 [IN ACCORDANCE WITH] AS 08.88.460. The fund may not exceed $500,000 and 13 amounts in the fund in excess of $250,000 may be appropriated for real estate 14 educational purposes as provided in AS 08.88.091. 15 * Sec. 36. AS 08.88.455 is amended to read: 16 Sec. 08.88.455. Payments by real estate licensees [BROKERS AND 17 SALESMEN]. (a) A [LICENSED] real estate licensee, [BROKER, ASSOCIATE 18 BROKER, OR SALESMAN] when applying for [OBTAINING] or renewing a real 19 estate license, in lieu of obtaining a corporate surety bond, shall pay to the commission 20 in addition to the license fee, a surety fund fee not to exceed $125. After the fund 21 reaches $250,000 , the commission shall by regulation adjust the surety fund fees so 22 that, taking into account anticipated expenditures for claims against the fund and real 23 estate educational purposes, the fund is maintained at a level not less than $250,000. 24 (b) All fees collected under this section shall be paid at least once a month by 25 the department [COMMISSION] into the general fund. These payments shall be 26 credited to the real estate surety fund. 27 * Sec. 37. AS 08.88.460 is amended to read: 28 Sec. 08.88.460. Claim for payment. (a) Subject to (e) of this section, a [A] 29 person seeking reimbursement for a loss suffered in a real estate transaction as a result 30 of fraud, misrepresentation, deceit, or the conversion of trust funds or the conversion 31 of community association accounts under the control of a community association
01 manager on the part of a licensee [REAL ESTATE BROKER, ASSOCIATE REAL 02 ESTATE BROKER, OR REAL ESTATE SALESMAN] licensed under this chapter 03 shall make a claim to the commission for reimbursement on a form furnished by the 04 commission. In order to be eligible for reimbursement by the commission, the 05 claim form must be filed within two years after the occurrence of the fraud, 06 misrepresentation, deceit, or conversion of trust funds or the conversion of 07 community association accounts under the control of a community association 08 manager claimed as the basis for the reimbursement. The form shall be executed 09 under penalty of unsworn falsification [,] and must include the following: 10 (1) the name and address of each [THE] real estate licensee involved 11 [BROKER, ASSOCIATE REAL ESTATE BROKER, OR REAL ESTATE 12 SALESMAN]; 13 (2) the amount of the alleged loss; 14 (3) the date or period of time during which the alleged loss occurred; 15 (4) the date upon which the alleged loss was discovered; 16 (5) the name and address of the claimant; and 17 (6) a general statement of facts relative to the claim. 18 (b) A copy of a claim filed with the commission under (a) of this section shall 19 be sent to each [THE] real estate licensee [BROKER, ASSOCIATE REAL ESTATE 20 BROKER, OR REAL ESTATE SALESMAN] alleged to have committed the 21 misconduct resulting in losses, to the principal [AS WELL AS A] real estate broker 22 employing a licensee [AN ASSOCIATE REAL ESTATE BROKER OR REAL 23 ESTATE SALESMAN] alleged to have committed the conduct resulting in losses, and 24 to any other real estate licensee involved in the transaction at least 20 days before 25 any hearing held on the claim by the commission. 26 (c) Within seven days after receipt of notice of a claim under (b) of this 27 section , each [THE] real estate licensee [BROKER, ASSOCIATE REAL ESTATE 28 BROKER, OR REAL ESTATE SALESMAN] against whom the claim is made may 29 elect to defend the claim as a small claims action in district court under District Court 30 Civil Rules 8 - 22 [,] if the claim does not exceed the small claims jurisdictional limit. 31 An election to defend a claim in district court under the small claims rules may not
01 be revoked by the real estate licensee [BROKER, ASSOCIATE BROKER, OR 02 SALESMAN] without the consent of the claimant. Upon receipt of a valid written 03 election under this subsection , the commission shall dismiss the claim filed with the 04 commission and notify the claimant that the claim must be brought as a small claims 05 action in the appropriate state court. 06 (d) A claimant under this section shall pay a filing fee of $250 to the 07 commission at the time the claim is filed. The filing fee shall be refunded [ONLY] 08 if 09 (1) the commission makes an award to the claimant from the real estate 10 surety fund; 11 (2) the claim is dismissed under (c) of this section; or 12 (3) the claim is withdrawn by the claimant before the commission holds 13 a hearing on the claim. 14 * Sec. 38. AS 08.88.460 is amended by adding a new subsection to read: 15 (e) If the claim is for a loss incurred as a result of acts or omissions occurring 16 in the course of the licensee's practice of community association management, only the 17 owners' association for which the real estate licensee practices community association 18 management may file a claim under this section. 19 * Sec. 39. AS 08.88.465(b) is amended to read: 20 (b) A certified or authenticated copy of a record, including a transcript of 21 testimony, of a hearing held under AS 08.88.071(a)(3) in which fraud, 22 misrepresentation, deceit, or conversion of trust funds or the conversion of 23 community association accounts under the control of a community association 24 manager on the part of a [LICENSED BROKER, ASSOCIATE BROKER, OR] real 25 estate licensee [SALESMAN] is established [,] may constitute sufficient evidence to 26 support a finding that a claim should be paid . 27 * Sec. 40. AS 08.88.465(c) is amended to read: 28 (c) Before the commission finds that payment should be made from the real 29 estate surety fund, each [THE] real estate licensee against whom the claim is made 30 [BROKER, ASSOCIATE BROKER, OR REAL ESTATE SALESMAN] shall be 31 afforded an opportunity to file with the commission, within 10 days after receipt of
01 notification of the claim under AS 08.88.460(b), either a written statement in 02 opposition to the claim or an application for the presentation of additional evidence. 03 * Sec. 41. AS 08.88.465(d) is amended to read: 04 (d) The claimant bears the burden of proof of establishing that the claimant 05 suffered losses in a real estate transaction as a result of fraud, misrepresentation, 06 deceit, or the conversion of trust funds or the conversion of community association 07 accounts under the control of a community association manager on the part of a 08 real estate licensee [BROKER, ASSOCIATE REAL ESTATE BROKER, OR REAL 09 ESTATE SALESMAN] and the extent of those losses. All facts shall be established 10 by a preponderance of the evidence. 11 * Sec. 42. AS 08.88.470 is amended to read: 12 Sec. 08.88.470. Findings and payment. At the conclusion of the 13 commission's consideration of a claim made under AS 08.88.460, it shall make written 14 findings and conclusions on the evidence. If the commission finds that the claimant 15 has suffered a loss in a real estate transaction as a result of fraud, misrepresentation, 16 deceit, or the conversion of trust funds or the conversion of community association 17 accounts under the control of a community association manager on the part of a 18 real estate licensee [BROKER, ASSOCIATE BROKER, OR SALESMAN], the 19 commission may award a claimant reimbursement from [OUT OF] the real estate 20 surety fund for the claimant's loss up to $10,000. Not [HOWEVER, NOT] more than 21 $10,000 may be paid for each transaction regardless of the number of persons injured 22 or the number of parcels of real estate involved in the transaction. 23 * Sec. 43. AS 08.88.472(a) is amended to read: 24 (a) The [WHEN AN AWARD IS MADE FROM THE REAL ESTATE 25 SURETY FUND UNDER AS 08.88.470, THE] commission may charge to the real 26 estate surety fund the costs of a hearing on a claim for reimbursement held under 27 AS 08.88.465. The commission shall deposit into the real estate surety fund 28 amounts [AS 08.88.071 OR 08.88.465. AMOUNTS SUBSEQUENTLY] recovered 29 [BY THE COMMISSION] for these costs from the licensee under AS 08.88.071(b) or 30 from other parties under AS 08.88.490 [SHALL BE DEPOSITED TO THE REAL 31 ESTATE SURETY FUND].
01 * Sec. 44. AS 08.88.474 is amended to read: 02 Sec. 08.88.474. Payment of small claims judgment. If a claim originally 03 filed with the commission is dismissed and is heard as a small claims action under 04 AS 08.88.460(c) and the claimant prevails in the small claims action against a [THE] 05 real estate licensee [BROKER, ASSOCIATE REAL ESTATE BROKER, OR 06 SALESMAN], the commission shall make an award from the fund of any outstanding 07 portion of the small claims judgment on receipt of a copy of the final judgment and 08 an affidavit from the claimant stating that more than 30 days have elapsed since the 09 judgment became final and that the judgment has not yet been satisfied by the 10 licensee determined responsible [BROKER, ASSOCIATE BROKER, OR 11 SALESMAN HAS NOT SATISFIED THE JUDGMENT DURING THAT TIME]. 12 After payment of a small claims judgment , the commission is subrogated to the 13 claimant's rights in the judgment under AS 08.88.490. 14 * Sec. 45. AS 08.88.475 is amended to read: 15 Sec. 08.88.475. Maximum liability. (a) The maximum liability of the real 16 estate surety fund may not exceed $50,000 for any one real estate licensee [BROKER 17 OR SALESMAN]. 18 (b) If the $50,000 liability of the fund as provided in (a) of this section is 19 insufficient to pay in full the valid claims of all persons who have filed claims against 20 an individual licensee [ONE BROKER OR SALESMAN], the $50,000 shall be 21 distributed among the claimants in the ratio that their individual claims bear to the 22 aggregate of valid claims, or in another manner that the commission considers 23 equitable. Distribution shall be among the persons entitled to share in the recovery [,] 24 without regard to the order [OF PRIORITY] in which their claims were filed. 25 * Sec. 46. AS 08.88.490 is amended to read: 26 Sec. 08.88.490. Right to subrogation. When the commission has paid to a 27 claimant from the real estate surety fund the sum awarded by the commission, the 28 commission shall be subrogated to all of the rights of the claimant to the amount paid , 29 and the claimant shall assign all right, title , and interest in that portion of the claim to 30 the commission. Money collected [AMOUNTS SUBSEQUENTLY REALIZED] by 31 the commission on the claim shall be deposited to the real estate surety fund.
01 * Sec. 47. AS 08.88.900 is amended to read: 02 Sec. 08.88.900. Exceptions. (a) Except as provided in (b) of this section, 03 this [THIS] chapter does not apply to 04 (1) a person who is not licensed under this chapter who manages or 05 makes a real estate transaction with respect to real estate the person owns or is seeking 06 to own so long as the compensation the person receives does not include any 07 portion of the commission or other compensation paid to a real estate licensee in 08 the transaction [ON THE PERSON'S OWN BEHALF, UNLESS THE 09 TRANSACTION INVOLVES LAND DEFINED IN AS 34.55.044(7) THAT IS NOT 10 IN ALASKA]; 11 (2) an attorney in fact under a power of attorney authorizing the 12 consummation of a specific real estate transaction; an attorney in fact may not act as 13 such under this paragraph for more than two transactions in a calendar year; 14 (3) a lawyer performing duties as a lawyer; 15 (4) a public official in the conduct of official duties; 16 (5) a person acting as receiver, trustee, administrator, executor, or 17 guardian; 18 (6) a person acting under court order; 19 (7) a person acting under the authority of a will or trust instrument; 20 (8) a person dealing in mineral rights transactions; 21 (9) an [A DOMESTIC OR FOREIGN CORPORATION, A GENERAL 22 OR LIMITED PARTNERSHIP, OR A PARTNER OR REGULAR] employee of a 23 domestic or foreign corporation , [OR A] general or limited partnership, or limited 24 liability company when performing an act described in AS 08.88.161 incidental to 25 [IN] the regular course of business when the act relates [, OR AS AN INCIDENT] 26 to [,] the management, sale, or other disposition of real estate owned by the foreign 27 or domestic corporation , general or limited partnership or limited liability company ; 28 the exemption under [PROVIDED IN] this paragraph does not apply to a person 29 employed by a foreign or domestic corporation, partnership, limited partnership, 30 or limited liability company who performs an act described in AS 08.88.161 [, 31 UNLESS ALLOWED FOR UNLICENSED PERSONS UNDER AS 08.88.165,] either
01 (A) as a vocation; or 02 (B) for compensation if the amount of the compensation is 03 dependent upon or directly related to the value of the real estate with respect 04 to which the act is performed; 05 (10) a person performing duties as a resident manager ; 06 (11) a bookkeeper or accountant performing bookkeeping or 07 accounting functions; 08 (12) a secretary or receptionist in a real estate office accepting rent 09 or association fees and providing a written receipt for the rent or fees when a 10 tenant or community association member delivers the rent or fees to the real 11 estate office; 12 (13) tradesmen or vendors of services performing maintenance and 13 repair functions; 14 (14) an employee of a real estate firm or of a property owner 15 delivering or accepting a real estate contract or application, or a related 16 amendment, to or from another person; 17 (15) an individual assisting in the performance of real estate 18 activities only by carrying out administrative, clerical, or maintenance tasks; 19 (16) the management of a total of four or fewer residential units by 20 a natural person for other persons; 21 (17) community association management for property organized 22 under AS 34.07 or AS 34.08 by a resident owner of a unit in the property if the 23 owner is a member of a self-managed community association for the property; 24 (18) community association management by a developer of property 25 organized under AS 34.07 or AS 34.08 during the period that the developer 26 retains control of at least 51 percent of the property; 27 (19) an attorney in fact who, for a relative, acts under a power of 28 attorney that authorizes the consummation of a specific real estate transaction; 29 in this paragraph, "relative" means a spouse or a great grandparent, 30 grandparent, parent, uncle, aunt, sibling, child, nephew, niece, grandchild, or 31 great grandchild by the whole or half blood or by marriage but does not include
01 a relative who is only related through a step relationship, such as a stepbrother 02 or the child of a stepbrother, except that "relative" includes a stepchild; 03 (20) a mobile home dealer licensed under AS 08.67 performing 04 within the scope of the dealer's license; or 05 (21) the management by a natural person of property for another 06 person without a fee other than the reimbursement of expenses [OF RENTED 07 REAL ESTATE IF THE RESIDENT MANAGER'S DUTIES ARE LIMITED TO 08 THE NEGOTIATION OF LEASES AND RENTAL AGREEMENTS AND THE 09 COLLECTION OF RENT FOR THE USE OF THE REAL ESTATE AND IF THE 10 RESIDENT MANAGER IS 11 (A) EMPLOYED BY THE OWNER OF THE REAL ESTATE; 12 OR 13 (B) EMPLOYED BY, OR ENGAGED UNDER CONTRACT 14 WITH, A LICENSED REAL ESTATE BROKER]. 15 * Sec. 48. AS 08.88.900 is amended by adding a new subsection to read: 16 (b) Notwithstanding that, under this section, a person is exempt from this 17 chapter, AS 08.88.401(e)(1) prohibits a licensee from knowingly paying to that person 18 any part of a fee, commission, or other compensation received by the licensee in 19 buying, selling, exchanging, leasing, auctioning, or renting real estate. 20 * Sec. 49. AS 08.88 is amended by adding a new section to read: 21 Sec. 08.88.910. Application to independent contractors. The provisions of 22 this chapter that apply to employment relationships and employees also apply to 23 contracting relationships and independent contractors. 24 * Sec. 50. AS 08.88.990(1) is amended to read: 25 (1) "commission" means the Real Estate Commission except where the 26 context indicates that "commission" refers to a fee paid for personal services ; 27 * Sec. 51. AS 08.88.990(3) is amended to read: 28 (3) "real estate" means an interest or estate in land, corporeal or 29 incorporeal , except that it does not include a unit in a hotel, motel, boarding house, 30 rooming house, or other transient lodging facility, or a unit in a warehouse, mini- 31 storage facility, or other facility the function of which is limited to warehousing purposes ;
01 * Sec. 52. AS 08.88.990(4) is amended to read: 02 (4) "resident manager" means a person who resides on rented or leased 03 real property or on contiguous property owned by the same owner, [AND] manages 04 the property [IT] for the benefit of another person , and is either employed by the 05 owner of the real estate or employed by, or under contract with, a real estate 06 licensee . 07 * Sec. 53. AS 08.88.990 is amended by adding new paragraphs to read: 08 (5) "community association management" means an activity undertaken 09 for an owners' association with regard to property organized under either AS 34.07 or 10 AS 34.08 under an agreement in exchange for a fee, commission, or other valuable 11 consideration, including the following activities: preparing budgets and other financial 12 documents, collecting, controlling, or disbursing funds, obtaining insurance for the 13 association, contracting for maintenance and repair to association property, and 14 supervising the day-to-day operations of the association under the direction of the 15 association's board of directors; 16 (6) "community association operating account" means an account in a 17 financial institution maintained in the name of a specific community association that 18 contains money used for day-to-day operation and not for other uses; 19 (7) "community association reserve account" means an account in a 20 financial institution maintained in the name of a specific community association that 21 contains money reserved for the expected replacement cost of improvements within the 22 community association or for other future uses; 23 (8) "knowingly" has the meaning given in AS 11.81.900(a); 24 (9) "property management" is an activity undertaken for another with 25 regard to real property under an agreement in exchange for a fee, commission, or other 26 valuable consideration, including the following activities: marketing, leasing, 27 contracting for physical, administrative, or financial maintenance, performance of 28 overall management of real property, and the supervision of these actions; 29 (10) "real estate licensee" is a person who holds a license under this 30 chapter; the term includes a broker unless the context clearly excludes brokers; 31 (11) "real estate transaction"
01 (A) in sales, means the transfer or attempted transfer of an 02 interest in a unit of real property, an act conducted as a result of or in pursuit 03 of a contract to transfer an interest in a unit of real property, or an act 04 conducted in an attempt to obtain a contract to market real property; 05 (B) in property management, means the lease or rental of a unit 06 of real property, including collection of rent from a tenant of a unit of rented 07 or leased real property, an attempt to rent or lease a unit of real property, an 08 attempt to collect rent from a tenant of rented or leased real property, or an act 09 conducted as a result of or in pursuit of a contract to manage a unit of leased 10 or rented real property; 11 (C) in community association management, means the collection 12 or attempted collection of dues from a unit owner or an activity conducted as 13 a result of or in pursuit of a contract with a community association to manage 14 the affairs of a community association. 15 * Sec. 54. AS 34.70.050 is amended to read: 16 Sec. 34.70.050. Form of disclosure statement. The Real Estate Commission 17 established under AS 08.88.011 shall establish the form of the disclosure statement 18 required by AS 34.70.010. The disclosure statement must include a provision that 19 notifies transferees 20 (1) that they are responsible for determining whether a person who 21 has been convicted of a sex offense resides in the vicinity of the property that is 22 the subject of the transferee's potential real estate transaction; and 23 (2) where information about the location of convicted sex offenders 24 can be obtained. 25 * Sec. 55. AS 08.88.111 is repealed. 26 * Sec. 56. TRANSITIONAL PROVISION. Notwithstanding AS 08.88.161(5) and (6), 27 added by sec. 8 of this Act, a person may practice, or negotiate a contract to practice, 28 community association management and may collect fees for community association 29 management without a license issued under AS 08.88 until January 1, 1999. 30 * Sec. 57. REGULATIONS. Notwithstanding sec. 59 of this Act, the Real Estate 31 Commission may proceed to adopt regulations necessary to implement AS 08.88.091(f) and
01 (g), added by this Act. The regulations take effect under AS 44.62 (Administrative Procedure 02 Act), but not before January 31, 1999. 03 * Sec. 58. REVISOR'S INSTRUCTION. Wherever in the Alaska Statutes and the Alaska 04 Administrative Code the term "salesman" is used in a context relating to real estate salesmen 05 licensed under AS 08.88, it shall be read as "salesperson" when to do so would be consistent 06 with changes made by this Act. Under AS 01.05.031, the revisor of statutes shall implement 07 this section in the statutes, and, under AS 44.62.125, the regulations attorney shall implement 08 this section in the administrative code. 09 * Sec. 59. AS 08.88.091(f) and (g), added by sec. 7 of this Act, take effect January 31, 10 1999. 11 * Sec. 60. Except as provided in sec. 59 of this Act, this Act takes effect immediately 12 under AS 01.10.070(c).