HOUSE BILL NO. 418 An Act extending the termination date of the Real Estate Commission; and providing for an effective date. REPRESENTATIVE NORMAN ROKEBERG, SPONSOR, explained the bill noting that AS 08.88.010 has established the Real Estate Commission (REC), providing for appointment of members by the Governor. The Commission consists of five real estate brokers or associate brokers, one from each of the four judicial districts and two public members. The bill, if enacted would extend the Commission operation for another four years to June 30, 2008. The Commission serves the public interest by adopting regulations to carry out the laws governing the practice of real estate in Alaska. It approves education courses and instructors, makes final licensing decisions and takes disciplinary action against people who violate the licensing laws. Representative Rokeberg advised that Legislative Audit recommends REC be extended. The regulation and licensing of real estate professionals provides necessary public protection in the buying and selling of residential and commercial properties. He recommended that REC be extended to June 30, 2008, and urged passage. He pointed out amendments made by the House Labor & Commerce Committee, which address two issues: · Home inspectors, and · Requests from the Division of Occupational Licensing, cleaning up statutory language. Representative Rokeberg highlighted the sectional analysis: · Section 1 extends the sunset for the Real Estate th Commission to June 30, 2008. · Section 2 addresses the question of dual insurance. Current law requires each licensee to have insurance. · Sections 3 & 4 were requested by the Division of Insurance and clear up language regarding inactive real estate licenses and address notification. · Section 5 addresses continuing education for a person who has a transitional home inspector license. · Section 6 allows for the act to take effect immediately. Representative Rokeberg referenced Amendment #1, #23- LS1548\H.1, Mischel, 3/1/04. (Copy on File). Co-Chair Williams asked if the amendment had received any other committee hearings. Co-Chair Harris reported that the bill had received rigorous debate in the House Labor and Commerce Committee. Co-Chair Harris MOVED to ADOPT Amendment #1. Co-Chair Williams OBJECTED and noted that he wished it had been addressed in the previous committee. Representative Stoltze recommended that Amendment #1 needed to have more public in put. He referenced Page 1, Line 10, deleting language "American Home Inspectors Training Institute", indicating that it would be good to hear if that change was supported. Representative Rokeberg responded that he had no objection to removing the language. He pointed out that organization was added in the Senate Judiciary Committee last year. He understood that the distinction was substantially different and that the requirements were not adequate. Representative Stoltze MOVED to ADOPT the amendment to Amendment #1. Co-Chair Harris OBJECTED and asked if there was a problem with that group. Representative Rokeberg replied that they had lobbied to get placement in the bill last year with the Chair of the Senate Judiciary Committee. TAPE HFC 04 - 80, Side B  Representative Rokeberg agreed that the amendment to the amendment would be appropriate. Co-Chair Harris asked why the public felt that way. Representative Rokeberg responded that the other included organizations are much more thorough. The course of instruction by the American Home Inspectors is only six days and includes 50 questions; whereas, the other exam is a longer course of study and has 250 questions. It is a more arduous course of study. Co-Chair Harris WITHDREW his OBJECTION to amending Amendment #1. There being NO further OBJECTION, the amendment was to Amendment #1 was adopted. Representative Croft inquired if the first portion of the amendment adds a continuing education requirement. Representative Rokeberg responded that was part of the original bill. Representative Croft asked what the section would be adding. JANET SEITZ, STAFF, REPRESENTATIVE NORMAN ROKEBERG, explained that when the regulations were developed, there were problems the Division had in distinguishing between who needed continuing education and who did not. It was the original intent that once the party got their license, the only thing they would need would be the continuing education. The amendment makes it clear that inspectors must submit the application within one year of passing the exam, or they demonstrate the documentation that they had passed the exam, or they could show that they had the continuing education requirement. Representative Croft requested clarification if they would have to apply within one year, adding the additional language of proof of a continuing education requirement. Ms. Seitz responded that it would be either one or the other. Representative Croft asked what was the "residential combination examination". Ms. Seitz replied that when the Division was developing the regulations, under the current law, the passing of the building inspector examination, a person would have to pass four separate exams. The combo examination is a "4 in 1" exam and instead of taking separate exams, the qualifying person takes only the combo exam. Representative Croft advised that the fee for licensing would be $200 dollars. He inquired if the fee had been left out when previously passed. Ms. Seitz replied that it had been left out. Co-Chair Williams WITHDREW his OBJECTION to the amended Amendment #1. There being NO further OBJECTION, Amendment #1 was adopted. Co-Chair Harris inquired if the bill had received an audit. PAT DAVIDSON, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT DIVISION, replied that an audit had been done and a recommendation was made for a four-year extension. Further recommendations made were: · To increase the ceiling for the real estate assurity fund; · To create a reasonable due notice when claims are approved; · To clarify that if a real estate agent was involved in the sale of a mobile home, the transaction be covered by the real estate assurity fund. Ms. Davidson acknowledged that the third recommendation was accompanied by controversy and that the Division did not mean that all mobile home sales had to be handled by real estate agents. That would not be recommended. They would need that only to the extent that if a real estate agent was involved, the transaction would then be covered by that fund. The proposed bill does not address that concern. Representative Foster MOVED to report CS HB 418 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS HB 418 (FIN) was reported out of Committee with a "do pass" recommendation and with a new fiscal note by the Department of Community & Economic Development.