Legislature(2007 - 2008)HOUSE FINANCE 519
04/17/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB133 | |
| HB159 | |
| HB205 | |
| HB147 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 147 | TELECONFERENCED | |
| + | HB 159 | TELECONFERENCED | |
| + | HB 205 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 133 | TELECONFERENCED | |
HOUSE BILL NO. 205
An Act relating to real estate broker and real estate
salesperson licensing; and providing for an effective
date.
ELEANOR WOLFE, STAFF, REPRESENTATIVE KURT OLSON, testified
that HB 205 would clarify and strengthen a number of items
in current statute and increase consumer protection in the
buying and selling process of homes. The Association of
Alaska Realtors (AAR) strongly supports the bill. She noted
that the committee substitute contains the changes
recommended by the Division of Occupational Licensing,
Department of Commerce, Community & Economic Development.
2:31:03 PM
Representative Gara referenced Page 3, which provides the
Association the judgment to not suspend a license if they
are convicted of a crime of "dishonesty", which affects
their ability to practice.
2:32:13 PM
DAVE FEEKEN, (TESTIFIED VIA TELECONFERENCE), ALASKA
ASSOCIATION OF REALTORS, ANCHORAGE, stated that HB 205 is
the modernization of existing statutes related to real
estate brokerage, addressing issues of education of real
estate licensees and the supervision relationship between
brokers and licensees.
Sections 1, 4, 5, & 6: Realtors proposes clarifying the
issuing a license to persons convicted of felonies. Current
law is unclear as to time elapses since the completion of a
sentence for those crimes. HB 205 clarifies and
standardizes the 7 years as is required with the broker and
the associate broker license with the language needed to
protect the public from people convicted of felonies.
Additionally, it standardizes language for all license,
broker, associate broker, or sales associate, when a
licensee is convicted of a felony or other crime committed
while licensed under statute, in the judgment of the real
estate commission, if the crime or felony affects the
ability of that person to practice competently and safely,
the commission may revoke it for a period of 7 years.
Section 2: The current requirement for 20 hours of pre-
licensing education is 20 years old, when brokers controlled
the information, however, with the world wide web, nearly
80% of current buyers use the web for their property search,
no home inspections, a couple of loan programs available
from Alaska Housing Finance Corporation (AHFC) have been
replaced by hundreds from all over the country, with no
concerns about wetlands maps, required disclosure of
property condition, predatory lending issues, and that no
one knew that mold endangered mental capacity; the list goes
on.
Mr. Feeken stated that the Real Estate Commission has
continued to increase the required course material for pre-
licensing education, but the number of hours has not
increased. HB 205 would increase the required education
hours from 20 to 40 in order to take the exam. Even at 40
hours, Alaska is the lowest in the country.
Section 3: Additionally, the required topics of Post
Licensing education should be increased from 20 to 30 hours
to adequately teach the required course material. He
pointed out that the Alaska Association supports an increase
in hours verses a reduction in course content, in order to
meet the publics need for competent real estate
practitioners.
Section 7: Multiple Business Operations: The issue of a
single broker owning, operating, or being employed by
multiple corporations or partnerships is further clarified
to require all organizations to share a single physical
address. Many brokerage firms are multiple companies for
insurance and other reasons.
Section 8: Statutes have always stated that brokers are
responsible for the actions of their licensees, until the
Alaska Supreme Court ruled in the 80's that the broker is
not responsible for conduct they had no knowledge of, which
requires the broker to have a written policy and procedure
addressing issues:
1. Require real estate licensees to comply with all real
estate laws
2. Require real estate licensees to act fairly and
honestly in all dealings
3. Require real estate licensees to notify the broker or a
broker designee of any legal dispute or allegation of
wrong-doing from a seller, buyer, lesser, or lessee
4. Require real estate licensees to maintain regular
communication with the broker or a broker designee
Mr. Feeken concluded, in order to implement the education
hour changes, the Association requests an effective date of
Feb 1, 2008, the renewal date for all licensing.
2:37:46 PM
Representative Gara pointed out sections in the bill where
the crimes for which one could loose their license was
changed and asked if that was for the public's best. Mr.
Feeken responded that in the original draft, they only
addressed the sales associate license & was language that
had been added by the Department of Law, wanting to
eliminate specific crimes, while providing the Commission
latitude.
2:39:21 PM
Representative Gara countered that the Department most
likely wanted to give the Commission the discretion to
revoke the license for any felony. He asked if the
Association would object to leaving the language the way it
is, noting that if the felony is already on the books, it be
left there. Mr. Feeken explained that the intent was not to
limit it to five; the Commission needs the authority to
regulate people with a license and those wanting to obtain
the license should not have a felony record. Representative
Gara requested leaving the new language as is, but adding
the inclusion of old language, which provides the Commission
discretion to take away the felons license.
2:41:50 PM
Representative Hawker addressed Section 7 and questioned why
the principal office must share a physical address. Mr.
Feeken explained that there was a problem with a broker that
owned separate businesses at separate locations. The
intention was to make the licensure for a single business.
Representative Hawker suggested that there could be
occasions when successful businesses could have legitimate
occasion to have separate offices. Mr. Feeken replied, in
one Anchorage case, a broker reported to be under the
supervision of a broker in Denver. He voiced support
maintaining the language.
2:45:25 PM
Co-Chair Chenault questioned how many real estate agents had
lost their licenses due to felonies in the last five years.
Mr. Feeken did not respond, but emphasized that it is an
issue of moral turpitude. He noted that the current
Commission denies licenses for Driving While Intoxicated
(DWI's). The intent is to expand the net.
In response to a question by Co-Chair Chenault, Mr. Feeken
observed that the Commission denied a license to a broker
with a multiple DWI record. Co-Chair Chenault said he would
be concerned if a license were denied based on minor
offenses.
2:48:46 PM
Representative Hawker expressed concern with the broadness
of the "moral turpitude" language, since that is indefinable
and objective. Representative Gara agreed with concerns
regarding definable terms.
HB 205 was HELD in Committee for further consideration.
2:51:25 PM
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