05/08/2007 01:30 PM Senate LABOR & COMMERCE

         CSHB 205(FIN)-REAL ESTATE BROKERS/SALESPERSONS                                                                     
                                                                                                                                
1:57:03 PM                                                                                                                    
CHAIR ELLIS announced CSHB 205(FIN) to be up for consideration.                                                                 
                                                                                                                                
ELEANOR WOLF, staff  to Representative Kurt Olsen,  sponsor of HB
,  said  this  bill  was  introduced at  the  request  of  the                                                               
Association of  Realtors. Specifically, section 1  would increase                                                               
the hours  of education for  a license  applicant from 20  to 40.                                                               
Section  2 increases  continuing education  hours from  20 to  30                                                               
hours.  The realtors  preferred  to increase  their hours  rather                                                               
than scrimp on the education  content. Section 3 adds a provision                                                               
that  7  years must  elapse  for  anyone  convicted of  a  felony                                                               
involving moral turpitude to reapply for licensure.                                                                             
                                                                                                                                
Section 4 adds language that allows  a broker to live outside the                                                               
state  if he  does not  employ a  licensee or  his licensees  are                                                               
directly supervised  by an associate  broker. Section  5 provides                                                               
that  a broker  who owns,  operates  or is  employed by  multiple                                                               
corporations  requiring  real estate  licensing  is  at a  single                                                               
physical address for all principle  offices. Apparently there was                                                               
an incident where  one person owned three or  four different real                                                               
estate  offices  and   was  never  appearing  in   any  of  them.                                                               
Therefore, he was not there to oversee.                                                                                         
                                                                                                                                
1:57:45 PM                                                                                                                    
Section  6  states  that  all policies  and  procedures  be  made                                                               
available  to  the  public.  Section  7 is  a  February  1,  2008                                                               
effective date. This  coincides with the issuance  of the renewal                                                               
licenses.                                                                                                                       
                                                                                                                                
1:58:45 PM                                                                                                                    
SENATOR  STEVENS asked  if any  other statutory  language says  a                                                               
felony involves only "moral turpitude."                                                                                         
                                                                                                                                
MS.  WOLF replied  that other  statutes  say you  can't be  under                                                               
indictment for  forgery, theft, extortion, conspiracy  to defraud                                                               
creditors or  any other  felony involving  moral turpitude  or be                                                               
convicted of  such offense. The bill  has added after a  lapse of                                                               
seven years.                                                                                                                    
                                                                                                                                
SENATOR  STEVENS said  he didn't  think  the bill  said what  the                                                               
sponsor statement says. The bill just says "a felony".                                                                          
                                                                                                                                
1:59:22 PM                                                                                                                    
CHAIR ELLIS asked MS. WOLF to get that clarified.                                                                               
                                                                                                                                
1:59:45 PM                                                                                                                    
DAVE  FEEKIN, Alaska  Association of  Realtors, supported  HB 205                                                               
and said it is a  modernization of the existing statutes relating                                                               
to  real   estate  brokerage.  He  highlighted   that  this  bill                                                               
increases the education time from 20  to 40 hours before a person                                                               
takes  the real  estate licensing  exam and  remarked that  at 20                                                               
hours,  Alaska was  the lowest  in  the country;  however, at  40                                                               
hours  it is  still the  lowest in  the country.  The Association                                                               
supported  increasing  post-licensing  education from  20  to  30                                                               
hours  to  have time  to  adequately  teach the  required  course                                                               
material rather than reducing the content.                                                                                      
                                                                                                                                
2:01:21 PM                                                                                                                    
Section 8 requires  a broker to be responsible  and supervise the                                                               
actions of their licensees. He  explained that the Alaska Supreme                                                               
Court  ruled in  the 80s  that a  broker is  not responsible  for                                                               
conduct that they  had no knowledge of, but  this provision makes                                                               
it  the duty  of  the licensee  to inform  the  broker of  issues                                                               
needing his supervision.                                                                                                        
                                                                                                                                
MS. WOLF  clarified and  apologized that she  was looking  at the                                                               
wrong version  of the bill  before, but  she needed more  time to                                                               
see if she used the correct sponsor statement.                                                                                  
                                                                                                                                
SENATOR  STEVENS  added  that  he  went  through  the  bill  more                                                               
carefully and saw  that every reference to  "moral turpitude" was                                                               
removed.  Saying "any  felony" was  tougher language  and he  was                                                               
comfortable with it.                                                                                                            
                                                                                                                                
2:03:38 PM                                                                                                                    
                                                                                                                                
RICK  URION, Director,  Division  of  Corporations, Business  and                                                               
Occupational  Licensing,  Department  of  Commerce,  Community  &                                                               
Economic  Development,  supported  HB   205  saying  it  is  more                                                               
workable for both the division and the public.                                                                                  
                                                                                                                                
2:04:43 PM                                                                                                                    
SENATOR STEVENS moved  to pass CSHB 205(FIN)  from committee with                                                               
individual recommendations  and attached fiscal note.  There were                                                               
no objections and it was so ordered.