02/06/2012 09:00 AM Senate FINANCE

SENATE BILL NO. 158                                                                                                           
                                                                                                                                
     "An Act relating to the Real Estate Commission; and                                                                        
     providing for an effective date."                                                                                          
                                                                                                                                
9:20:59 AM                                                                                                                    
                                                                                                                                
Senator Egan explained  SB 158, and referred  to the Sponsor                                                                    
Statement (copy on file). He  stated that SB 158 would allow                                                                    
the  real  estate  commission  to  appoint  an  overseer  to                                                                    
temporarily manage  a brokerage  in the  event a  broker was                                                                    
unable  to for  certain  reasons, including  a traumatic  or                                                                    
medical  event,  having  a license  suspended,  or  upon  an                                                                    
investigative  finding that  substantial evidence  points to                                                                    
misappropriation of funds. This  assured that trust accounts                                                                    
and   other   sensitive   business  affairs   were   handled                                                                    
responsibly.  The bill  would also  clarify that  a licensed                                                                    
assistant can only work for  the brokerage in which they are                                                                    
licensed. Ambiguity  in current law has  been interpreted to                                                                    
allow an  assistant licensed in  a brokerage to work  in any                                                                    
other  brokerage or  in multiple  brokerages. The  intent of                                                                    
current law was  to limit an assistant to  one brokerage. He                                                                    
furthered that SB 158 would  also allow a licensee to donate                                                                    
a portion of a commission to  charity. It would also allow a                                                                    
licensee to  advertise that some  of their  commission would                                                                    
be donated to a charity.                                                                                                        
                                                                                                                                
Co-Chair  Stedman called  Mr. Champion  to the  table. ERROL                                                                    
CHAMPION,  PRESIDENT, SOUTHEAST  ALASKA  BOARD OF  REALTORS,                                                                    
spoke  in support  of  SB  158, and  felt  it would  clarify                                                                    
current statute.                                                                                                                
                                                                                                                                
Co-Chair  Stedman   noted  recent  issues   regarding  local                                                                    
brokerage  firms  and  trust funds,  and  wondered  if  that                                                                    
influenced  the legislation.  Mr.  Champion  replied that  a                                                                    
broker was  found to  have misused a  trust fund,  and there                                                                    
was no one  that the Real Estate  Commission could designate                                                                    
to  monitor the  fund. The  person that  was charged  had to                                                                    
execute the close down of the fund.                                                                                             
                                                                                                                                
Co-Chair Stedman wondered  why charitable contributions were                                                                    
included  in SB  158.  Mr. Champion  replied  that the  bill                                                                    
would  change  the statute  to  allow  the designation,  and                                                                    
publicly declare the intention of the licensee.                                                                                 
                                                                                                                                
Senator Egan noted  the zero fiscal note, and  felt the zero                                                                    
fiscal note was merely housekeeping.                                                                                            
                                                                                                                                
Co-Chair  Stedman  mentioned  the one  previously  published                                                                    
zero fiscal note from the  Department of Commerce, Community                                                                    
and Economic Development.                                                                                                       
                                                                                                                                
SB  158  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Stedman discussed the following day's agenda.