04/18/2007 03:31 PM House FIN

HOUSE BILL NO. 205                                                                                                            
                                                                                                                                
     "An Act relating  to real estate broker  and real estate                                                                   
     salesperson  licensing; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment #1:                                                                                
                                                                                                                                
     Page 3, lines 19 - 20:                                                                                                     
     Delete  "[FORGERY,   THEFT,  EXTORTION,   CONSPIRACY  TO                                                                   
     DEFRAUD CREDITORS, OR"                                                                                                     
     Insert   "or  who  is   convicted  of  forgery,   theft,                                                               
     extortion, conspiracy to  defraud creditors, or fraud ["                                                               
                                                                                                                                
     Page 4, lines 13 - 15:                                                                                                     
     Delete  "[,  FORGERY, THEFT,  EXTORTION,  CONSPIRACY  TO                                                                   
     DEFRAUD CREDITORS, OR"                                                                                                     
     Insert   "or   upon  conviction   of   forgery,   theft,                                                               
     extortion,  conspiracy to  defraud  creditors, or  fraud                                                               
     [,"                                                                                                                        
                                                                                                                                
     Page 5, lines 9 - 11:                                                                                                      
     Delete "[, FORGERY, THEFT, EXTORTION, CONSPIRACY TO                                                                        
     DEFRAUD CREDITORS, OR"                                                                                                     
     Insert "or upon conviction of forgery, theft,                                                                          
     extortion, conspiracy to defraud creditors, or fraud                                                                   
     [,"                                                                                                                        
                                                                                                                                
     Page 6, lines 2 - 3:                                                                                                       
     Delete "[FORGERY, THEFT, EXTORTION, CONSPIRACY TO                                                                          
     DEFRAUD CREDITORS, OR"                                                                                                     
     Insert "or under indictment for forgery, theft,                                                                        
     extortion, conspiracy to defraud creditors, or fraud ["                                                                
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Gara explained  that the amendment  addresses                                                                   
what  the realtors  were trying  to address  previously.   He                                                                   
related  that under  current law  realtors  would lose  their                                                                   
license if  they have  engaged in the  crime of dishonesty  -                                                                   
forgery,   theft,  extortion,   or   conspiracy  to   defraud                                                                   
creditors.   The language relating  to "moral  turpitude" was                                                                   
removed and  "fraud" was added.   The real estate  commission                                                                   
also wanted the  discretion to take away a  license for other                                                                   
felonies.                                                                                                                       
                                                                                                                                
ELEANOR WOLFE, STAFF, REPRESENTATIVE  KURT OLSON, pointed out                                                                   
that the language was added at  the request of the Department                                                                   
of Law.                                                                                                                         
                                                                                                                                
4:22:45 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze asked  what constitutes  crimes  of moral                                                                   
turpitude.                                                                                                                      
                                                                                                                                
GAIL  HORESTKI,  ASSISTANT ATTORNEY  GENERAL,  DEPARTMENT  OF                                                                   
LAW, explained  that "moral turpitude" is  somewhat obsolete.                                                                   
Those crimes  are viewed as crimes  that are wrong in  and of                                                                   
themselves,  as  opposed  to  regulatory  crimes  such  as  a                                                                   
driver's license violation.                                                                                                     
                                                                                                                                
4:25:12 PM                                                                                                                    
                                                                                                                                
Ms.  Horestki related  a list  of statutes  that contain  the                                                                   
same language  as in this  bill regarding whether  the felony                                                                   
or other crime  committed affects the ability  of that person                                                                   
to practice as  a broker or associate broker  competently and                                                                   
safely.  The trend is to move away from moral turpitude.                                                                        
                                                                                                                                
Representative Thomas  asked if Ms. Horestki  approves of the                                                                   
amendment.   Ms. Horestki  said she has  no problem  with it.                                                                   
Representative Thomas  observed that he liked  the clarity in                                                                   
the amendment.                                                                                                                  
                                                                                                                                
Ms.  Horestki summarized  the intent  of the  amendment -  to                                                                   
preserve the  present disqualifying offenses which  appear to                                                                   
be directly related to real estate  transactions, and to also                                                                   
give  the commission  the ability  to use  its discretion  to                                                                   
determine  whether   a  particular  conviction   affects  the                                                                   
person's ability  to practice their profession.   She related                                                                   
an example of a drug felon who was denied a license.                                                                            
                                                                                                                                
Co-Chair Chenault asked if the  language is acceptable to the                                                                   
Alaska Association of Realtors.                                                                                                 
                                                                                                                                
DAVE   FEEKEN,  ALASKA   ASSOCIATION   OF  REALTORS,   KENAI,                                                                   
explained  that  the language  of  the bill  strengthens  the                                                                   
commission's ability to control who is licensed.                                                                                
                                                                                                                                
4:30:42 PM                                                                                                                    
                                                                                                                                
Representative  Gara  asked  for   Mr.  Feeken's  opinion  of                                                                   
Amendment 1.   Mr.  Feeken had not  seen it.   Representative                                                                   
Gara reiterated what the amendment would do.                                                                                    
                                                                                                                                
Mr. Feeken  related that his agency  is in favor  of anything                                                                   
that strengthens  the  ability of the  commission to  protect                                                                   
the public.                                                                                                                     
                                                                                                                                
Co-Chair Meyer WITHDREW his OBJECTION.                                                                                          
                                                                                                                                
There being NO OBJECTION, Amendment #1 was adopted.                                                                             
                                                                                                                                
4:34:12 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze  MOVED to  REPORT CSHB  205 (FIN) out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB  205 (FIN)  was REPORTED  out  of Committee  with a  "no                                                                   
recommendation"  and   with  zero  fiscal  note   #1  by  the                                                                   
Department of Commerce, Community and Economic Development.