SB 279: "An Act relating to regulation of residential mortgage lending, including the licensing of mortgage lenders, mortgage brokers, and mortgage loan originators, and compliance with certain federal laws relating to residential mortgage lending; and providing for an effective date."
00 SENATE BILL NO. 279 01 "An Act relating to regulation of residential mortgage lending, including the licensing of 02 mortgage lenders, mortgage brokers, and mortgage loan originators, and compliance 03 with certain federal laws relating to residential mortgage lending; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 06.01.050(3) is amended to read: 07 (3) "financial institution" means an institution subject to the regulation 08 of the department under this title; in this paragraph, "institution" includes a 09 commercial bank, savings bank, credit union, premium finance company, small loan 10 company, bank holding company, financial holding company, trust company, savings 11 and loan association, deferred deposit advance licensee under AS 06.50, and a 12 licensee under AS 06.60 [, A SMALL MORTGAGE LENDER UNDER AS 06.60, 13 AND AN ORIGINATOR UNDER AS 06.60 WHO IS EMPLOYED BY OR WORKS 14 UNDER EXCLUSIVE CONTRACT FOR A SMALL MORTGAGE LENDER; IN
01 THIS PARAGRAPH, 02 (A) "LICENSEE UNDER AS 06.60" HAS THE MEANING 03 GIVEN TO "LICENSEE" IN AS 06.60.990; 04 (B) "ORIGINATOR UNDER AS 06.60" HAS THE 05 MEANING GIVEN TO "ORIGINATOR" IN AS 06.60.990; 06 (C) "SMALL MORTGAGE LENDER UNDER AS 06.60" 07 HAS THE MEANING GIVEN TO "SMALL MORTGAGE LENDER" IN 08 AS 06.60.990]; 09 * Sec. 2. AS 06.60.010 is repealed and reenacted to read: 10 Sec. 06.60.010. Mortgage lender or mortgage broker license required. (a) 11 Unless exempt under AS 06.60.015, a person may not operate in the state as a 12 mortgage lender or mortgage broker with respect to a dwelling located in the state 13 unless the person is licensed as a mortgage lender or mortgage broker under this 14 chapter. 15 (b) A mortgage lender or mortgage broker required to be licensed under this 16 chapter shall register with the registry and maintain a valid unique identifier issued by 17 the registry. 18 (c) A mortgage license may cover more than one location of a mortgage 19 licensee. 20 (d) A person who operates as both a mortgage lender and a mortgage broker is 21 only required to obtain one mortgage license. 22 * Sec. 3. AS 06.60 is amended by adding new sections to read: 23 Sec. 06.60.012. Mortgage loan originator license required. (a) Unless 24 exempt under AS 06.60.015, an individual may not operate in the state as a mortgage 25 loan originator with respect to a dwelling located in the state unless the individual is 26 licensed as a mortgage loan originator under this chapter. 27 (b) An individual required to be licensed as a mortgage loan originator shall 28 (1) register with the registry and maintain a valid unique identifier 29 issued by the registry; 30 (2) work under exclusive contract for, or as an employee of, a 31 mortgage licensee; and
01 (3) be sponsored in the registry by a mortgage licensee under a 02 sponsorship approved in the registry by the department; in this paragraph, "sponsored" 03 means authorized to conduct business as a mortgage loan originator under the 04 supervision of a mortgage licensee. 05 Sec. 06.60.013. Loan processors or underwriters. (a) A loan processor or 06 underwriter who is an independent contractor may not operate as a loan processor or 07 underwriter unless the independent contractor loan processor or underwriter is 08 licensed as a mortgage loan originator under this chapter. An independent contractor 09 loan processor or underwriter licensed as a mortgage loan originator shall register with 10 the registry and maintain a valid unique identifier issued by the registry. 11 (b) An individual engaged solely in loan processor or underwriter activities 12 who is not an independent contractor is not required to be licensed as a mortgage loan 13 originator under this chapter if the individual does not represent to the public, through 14 advertising or other means of communicating or providing information, including the 15 use of business cards, stationery, brochures, signs, rate lists, or other promotional 16 items, that the individual can or will perform any of the activities of a mortgage loan 17 originator. 18 * Sec. 4. AS 06.60.015 is repealed and reenacted to read: 19 Sec. 06.60.015. Exemptions. (a) The following persons are exempt from the 20 mortgage lender or mortgage broker licensing requirements of this chapter: 21 (1) a depository institution; 22 (2) a subsidiary that is 23 (A) owned and controlled by a depository institution; and 24 (B) regulated by a federal banking agency; or 25 (3) an institution regulated by the Farm Credit Administration. 26 (b) The following individuals are exempt from the mortgage loan originator 27 licensing requirements of this chapter: 28 (1) a registered mortgage loan originator, when acting for an entity 29 described in (a)(1), (2), or (3) of this section; 30 (2) an individual who offers or negotiates terms of a residential 31 mortgage loan with or on behalf of an immediate family member of the individual; in
01 this paragraph, "immediate family member" means a spouse, child, stepchild, sibling, 02 stepsibling, parent, stepparent, grandparent, or grandchild; 03 (3) an individual who offers or negotiates terms of a residential 04 mortgage loan secured by a dwelling that serves as the individual's residence; 05 (4) a licensed attorney who negotiates the terms of a residential 06 mortgage loan on behalf of a client as an ancillary matter to the attorney's 07 representation of the client, unless the attorney is compensated by a lender, a mortgage 08 broker, or another mortgage loan originator or by an agent of a lender, a mortgage 09 broker, or another mortgage loan originator. 10 * Sec. 5. AS 06.60 is amended by adding a new section to read: 11 Sec. 06.60.016. Registry. (a) The department may participate in the registry 12 and pay the fees required for participation in the registry. 13 (b) The department 14 (1) may establish relationships or contracts with the registry or other 15 entities designated by the registry to collect and maintain records and process 16 transaction fees or other fees related to licensees or other persons subject to this 17 chapter; 18 (2) shall require mortgage licensees and mortgage loan originators to 19 register with the registry; and 20 (3) shall establish by regulation a process that allows mortgage 21 licensees and mortgage loan originators to challenge information entered into the 22 registry by the department. 23 (c) The department may adopt emergency regulations under AS 44.62 24 (Administrative Procedure Act) to implement this section, including emergency 25 regulations for the assessment of fees. 26 * Sec. 6. AS 06.60.020 is repealed and reenacted to read: 27 Sec. 06.60.020. Application for license. (a) An application for a license under 28 this chapter must 29 (1) be on the form prescribed by the department and the registry; 30 (2) contain complete information regarding the applicant; 31 (3) include fingerprints of the applicant, as needed to conduct a
01 background check; and 02 (4) contain other information or supporting material that the 03 department may require concerning the applicant, including the organization and 04 operations of an applicant for a mortgage license and the financial responsibility, 05 background, experience, and activities of the applicant. 06 (b) In this section, "applicant" includes a control person of an applicant for a 07 mortgage license. 08 * Sec. 7. AS 06.60.026 is amended to read: 09 Sec. 06.60.026. Transfer of mortgage loan originator license. A person who 10 holds a mortgage loan [AN] originator license may not transfer or assign the 11 mortgage loan originator license. 12 * Sec. 8. AS 06.60.027 is repealed and reenacted to read: 13 Sec. 06.60.027. Background checks. (a) To apply for a mortgage loan 14 originator license or a mortgage license, the applicant shall, at a minimum, furnish 15 information concerning the applicant's identity to the registry or the department, 16 including 17 (1) fingerprints for submission to the Federal Bureau of Investigation 18 and any governmental agency or entity authorized to receive that information for a 19 state, national, and international criminal history background check; and 20 (2) personal history and experience in a form prescribed by the registry 21 and authorization for the registry and the department to obtain 22 (A) an independent credit report from a consumer reporting 23 agency; and 24 (B) information related to administrative, civil, or criminal 25 findings by a governmental jurisdiction. 26 (b) For the purposes of this section, the department may use the registry as an 27 agent for requesting information from and distributing information to the United States 28 Department of Justice, another governmental agency, or another source directed by the 29 department. 30 (c) As part of the investigation of an application for a license under this 31 chapter, the department or the registry shall
01 (1) submit fingerprints of the applicant and a control person of the 02 applicant to the governmental agency or entity authorized to receive the fingerprints 03 for a state, national, or international criminal history background check under (a)(1) of 04 this section; and 05 (2) obtain an independent credit report and other information related to 06 administrative, civil, or criminal findings regarding the applicant and each control 07 person of the applicant under (a)(2) of this section. 08 * Sec. 9. AS 06.60.035(a) is amended to read: 09 (a) When [EXCEPT AS PROVIDED BY (c) OF THIS SECTION, WHEN] 10 an applicant submits an application for a license under this chapter to the department, 11 the applicant shall pay to the department 12 (1) an [A NONREFUNDABLE] application fee [OF $250] in partial 13 payment of those investigation expenses incurred by the department; and 14 (2) an annual [A BIENNIAL] license fee [OF $500] for the period 15 that terminates on December 31 [TWO YEARS] after the date the license is issued; 16 after this payment, the annual [BIENNIAL] license fee is due every year, subject to 17 renewal by the department [TWO YEARS ON THE ANNIVERSARY DATE OF 18 THE ORIGINAL ISSUANCE OF THE LICENSE]. 19 * Sec. 10. AS 06.60.035(c) is repealed and reenacted to read: 20 (c) The fees imposed by this section are in addition to the fees charged by the 21 registry and the business license fees assessed under AS 43.70 (Alaska Business 22 License Act). 23 * Sec. 11. AS 06.60.035 is amended by adding a new subsection to read: 24 (d) The department may establish by regulation the amount and manner of 25 payment of application fees, examination fees, license fees, permit fees, investigation 26 fees, and all administrative or other fees or penalties under this chapter. The fees 27 established under this chapter are nonrefundable. 28 * Sec. 12. AS 06.60 is amended by adding a new section to read: 29 Sec. 06.60.038. Prelicensing and relicensing education of mortgage loan 30 originators. (a) Before being licensed as a mortgage loan originator, an individual 31 shall complete at least 20 hours of education approved under (b) of this section. At a
01 minimum, the education must include 02 (1) three hours of instruction in federal statutes and regulations relating 03 to mortgage origination, fraud prevention, consumer protection, the nontraditional 04 mortgage marketplace, and fair lending.; 05 (2) three hours of instruction in ethics, including instruction on issues 06 related to fraud prevention, consumer protection, and fair lending; and 07 (3) two hours of training related to lending standards for the 08 nontraditional mortgage product marketplace. 09 (b) For the purposes of (a) of this section, prelicensing education courses must 10 be approved by the department. Approval of a prelicensing education course includes 11 review and approval of the course provider. 12 (c) Nothing in this section precludes a prelicensing education course that is 13 approved by the department and that is provided by the employer of the applicant, an 14 entity affiliated with the applicant, or a subsidiary or affiliate of an employer or entity 15 affiliated with the applicant. 16 (d) Prelicensing education may be offered in a classroom, on-line, or by other 17 means approved by the department. 18 (e) The department shall accept the prelicensing education requirements 19 approved by another state as credit toward completion of prelicensing education 20 requirements of this state. 21 * Sec. 13. AS 06.60.040 is repealed and reenacted to read: 22 Sec. 06.60.040. Testing of mortgage loan originators. (a) Before being 23 licensed as a mortgage loan originator, an individual shall pass, under the standards 24 established by this section, a qualified written national test and a qualified written state 25 test. The national test and test provider must be approved by the registry, and the state 26 test and test provider must be approved by the department. 27 (b) The department shall treat a written test as a qualified written national test 28 for purposes of (a) of this section if the department finds that the test adequately 29 measures the applicant's knowledge and comprehension in appropriate subject areas, 30 including 31 (1) ethics; and
01 (2) federal and state statutes and regulations relating to mortgage 02 origination, fraud prevention, consumer protection, the nontraditional mortgage 03 marketplace, and fair lending. 04 (c) This section does not prohibit a test provider approved by the registry from 05 providing a test at the location of the employer of the applicant, the location of a 06 subsidiary or affiliate of the employer of the applicant, or the location of an entity with 07 which the applicant holds an exclusive arrangement to conduct the business of a 08 mortgage loan originator. 09 (d) To pass a qualified written test, an applicant must answer at least 75 10 percent of the questions correctly. 11 (e) An individual may retake a test three consecutive times, but each 12 consecutive taking of a test must occur at least 30 days after taking the preceding test. 13 (f) After failing three consecutive takings of the same test, an individual shall 14 wait at least six months before retaking the test. 15 (g) A licensed mortgage loan originator who fails to maintain a valid license 16 for a period of five years or longer shall retake the test. The period without a valid 17 license under this subsection does not include the time the individual is a registered 18 mortgage loan originator. 19 (h) The department may assess a fee for each administration of a qualified 20 written test. 21 * Sec. 14. AS 06.60.045(a) is amended to read: 22 (a) An applicant for a mortgage license shall file with the application 23 submitted to the department under AS 06.60.020 a bond with one or more sureties. 24 The department shall establish by regulation the amount of the required bond 25 and the standards and procedures for recovery on the bond [IN THE AMOUNT 26 OF $25,000 UNDER WHICH THE APPLICANT IS THE OBLIGOR]. The bond 27 must be satisfactory to the department. 28 * Sec. 15. AS 06.60.045(d) is amended to read: 29 (d) The bond required under (a) of this section must be continuous until three 30 years after the department revokes or otherwise terminates the license. 31 * Sec. 16. AS 06.60.050(a) is amended to read:
01 (a) Within 30 days after the date the department determines that it has 02 received a complete application under AS 06.60.020 [AS 06.60.020 OR 06.60.025], 03 the required bond if the application is for a mortgage license, and any required fees 04 and investigative costs, the department shall either grant or deny the license. 05 * Sec. 17. AS 06.60.060 is repealed and reenacted to read: 06 Sec. 06.60.060. Determinations before licensing. Before granting a license 07 under this chapter, the department shall determine, at a minimum, that 08 (1) the applicant has complied with the requirements of this chapter for 09 obtaining the license; 10 (2) the applicant, including a control person of the applicant, has 11 (A) never had a mortgage lender, mortgage broker, or mortgage 12 loan originator license revoked by a governmental jurisdiction, except that, if a 13 revocation has been formally vacated, the revocation is not considered a 14 revocation under this paragraph; in this paragraph, 15 (i) a control person of an applicant for a mortgage 16 license includes an entity over which the control person exercised 17 control at the time of the revocation; and 18 (ii) an applicant for a mortgage loan originator license 19 includes an entity over which the applicant exercised control at the time 20 of the revocation; 21 (B) not been convicted of, or pled guilty or no contest to, a 22 felony involving an act of fraud or dishonesty, a breach of trust, or money 23 laundering, in a domestic, foreign, or military court during the seven-year 24 period preceding the date of the application, or at any time preceding the date 25 of application if the felony involved an act of fraud, dishonesty, a breach of 26 trust, or money laundering; however, if the applicant has been pardoned for the 27 conviction, the conviction is not considered a conviction under this 28 subparagraph; 29 (C) demonstrated financial responsibility, character, and 30 general fitness sufficient to command the confidence of the community and to 31 warrant a determination that the applicant will operate honestly, fairly, and
01 efficiently within the purposes of this chapter; under this subparagraph, 02 (i) an applicant does not show financial responsibility if 03 the applicant has shown inattention to or neglect of the management of 04 the person's own financial condition; 05 (ii) a determination that an applicant has not shown 06 financial responsibility may include current outstanding judgments 07 against the applicant, except judgments related solely to a claim related 08 to medical expenses; current outstanding tax liens or other government 09 liens and filings against the applicant; foreclosures of the applicant's 10 property within the three years preceding the date of the application; 11 and a pattern by the applicant of seriously delinquent accounts within 12 the three years preceding the date of the application; 13 (3) the applicant for a mortgage loan originator license 14 (A) has completed the prelicensing education requirement 15 described in AS 06.60.038; 16 (B) has passed a national test and a state test that meet the test 17 requirements described in AS 06.60.040; and 18 (C) has paid the fund fee as required by AS 06.60.550; and 19 (4) the applicant for a mortgage license has provided a bond as 20 required by AS 06.60.045. 21 * Sec. 18. AS 06.60 is amended by adding a new section to article 1 to read: 22 Sec. 06.60.077. Authority to issue provisional license. (a) Subject to (b) of 23 this section, the department may issue a provisional license to an applicant for a 24 mortgage license if the department has made all determinations under AS 06.60.060 25 necessary for licensure except those determinations based on the criminal history 26 background check required by AS 06.60.027. 27 (b) A provisional license may be granted under this section if the 28 (1) receipt by the department of the results of the criminal history 29 background check is delayed more than 60 days after the date the fingerprints are 30 submitted to the governmental agency that conducts the criminal history background 31 check; and
01 (2) delay described in (1) of this subsection is not caused by the 02 applicant. 03 (c) The duration of a provisional license issued under this section may not 04 exceed 90 days. 05 * Sec. 19. AS 06.60.080 is amended to read: 06 Sec. 06.60.080. Duration of license. Except for a provisional license issued 07 under AS 06.60.077, a [A] license issued under this chapter remains in effect until 08 December 31 of the year in which [FOR TWO YEARS AFTER] the license is 09 issued, unless the license is revoked, suspended, or surrendered, or becomes 10 [BECOMING] inactive under this chapter. 11 * Sec. 20. AS 06.60.085 is repealed and reenacted to read: 12 Sec. 06.60.085. Renewal of license. (a) If a licensee intends to renew a license, 13 the licensee shall submit to the department 14 (1) a renewal application at a time and in the form and manner 15 established by the department and the registry; 16 (2) the annual license fee; 17 (3) if the renewal is for a mortgage license, 18 (A) a report, as required by regulation, identifying any changes 19 in the information provided to the department; and 20 (B) current information indicating that the mortgage licensee 21 continues to meet the minimum standards for license issuance; 22 (4) if the renewal is for a mortgage loan originator license, 23 (A) a report, as required by regulation, identifying any changes 24 in the information provided to the department; 25 (B) current information indicating that the mortgage loan 26 originator continues to meet the minimum standards for license issuance; 27 (C) certificates or other documents showing the mortgage loan 28 originator has satisfied the annual continuing education requirements of 29 AS 06.60.160; and 30 (D) the fund fee required by AS 06.60.550; and 31 (5) payment of any other required fees for renewal of the license.
01 (b) The department may adopt by regulation procedures and deadlines 02 regarding the filing of an application for renewal of a license and the assessment of a 03 penalty or other consequence for late filing, consistent with the requirements of the 04 registry. 05 * Sec. 21. AS 06.60 is amended by adding a new section to read: 06 Sec. 06.60.087. Standards for license renewal. (a) After a licensee complies 07 with AS 06.60.085, the department may renew the licensee's license if 08 (1) the licensee continues to meet the standards for license issuance 09 under AS 06.60.060; 10 (2) in the case of a mortgage loan originator license, the mortgage loan 11 originator licensee has satisfied the annual continuing education requirements of 12 AS 06.60.160; 13 (3) the licensee has paid all required fees for renewal of the license; 14 and 15 (4) the licensee is in compliance with the requirements of this chapter 16 and regulations adopted and orders issued under this chapter. 17 (b) If a licensee fails to satisfy (a) of this section, the license expires at the end 18 of the period for which the license was issued. The department may adopt by 19 regulation procedures for the reinstatement of expired licenses. The procedures must 20 be consistent with the standards established by the registry. 21 * Sec. 22. AS 06.60.090(c) is amended to read: 22 (c) For a license to become inactive, a licensee shall provide the department 23 with a written request that the license become inactive [AND RETURN THE 24 LICENSE CERTIFICATE TO THE DEPARTMENT]. The request must include the 25 licensee's name and [,] address [,] and other information [THAT] the department 26 requires to process the request. If the request is made by mortgage licensee, the 27 request must include [AND] a statement by the mortgage licensee that all mortgage 28 loans of the mortgage licensee have been paid in full or sold. 29 * Sec. 23. AS 06.60.090(e) is amended to read: 30 (e) If a person holds a license that becomes inactive under this section, the 31 person may not operate as a mortgage lender, mortgage broker, or mortgage loan
01 originator under the license in this state until the license is reactivated. 02 * Sec. 24. AS 06.60.090(f) is amended to read: 03 (f) If a license becomes inactive under this section, the license remains 04 inactive until the license expires, the person surrenders the license, or the department 05 approves the reactivation of the license, whichever event occurs first [PERSON 06 WHO HOLDS THE INACTIVE LICENSE PROVIDES THE DEPARTMENT WITH 07 A WRITTEN REQUEST THAT THE LICENSE BE REACTIVATED]. The 08 licensee's request for reactivation must include the information that the department 09 requires to process the request. 10 * Sec. 25. AS 06.60.090(g) is repealed and reenacted to read: 11 (g) While a license is inactive under this section, the person holding the 12 inactive license shall 13 (1) pay the annual license fee as required by AS 06.60.035; 14 (2) inform the department of any change that occurs in the name and 15 address of the person, the location of the person's business, or the business operations 16 or control of the person; 17 (3) maintain the bond required by AS 06.60.045; and 18 (4) file the annual report required by AS 06.60.100(a). 19 * Sec. 26. AS 06.60.095 is repealed and reenacted to read: 20 Sec. 06.60.095. Reactivation of inactive license. (a) A person who has an 21 inactive license certificate under AS 06.60.090 may apply to the department for an 22 active license and pay the required fees. To be eligible for license reactivation, the 23 applicant shall comply with all requirements for licensure in effect at the time of 24 reactivation. 25 (b) If the department reactivates a license under this section, the license 26 expires on December 31 of the year in which it is issued. 27 * Sec. 27. AS 06.60.100(a) is amended to read: 28 (a) Annually, on [ON] or before a [MARCH 15, OR ON ANOTHER] date 29 established by the department by regulation, [OF EACH YEAR] a mortgage licensee 30 shall file a report with the department providing [GIVING] relevant information that 31 the department requires concerning the business and operations of [EACH
01 LOCATION IN THIS STATE WHERE] the mortgage licensee [CONDUCTS 02 BUSINESS IN THIS STATE DURING THE PRECEDING CALENDAR YEAR]. 03 The mortgage licensee shall make the report under oath or on affirmation. The content 04 and form of the report shall be established by the department by regulation. 05 * Sec. 28. AS 06.60.100 is amended by adding a new subsection to read: 06 (c) A mortgage licensee shall submit to the registry, as required by the 07 registry, reports of the condition of the licensee, which must be in the form and 08 contain the information that the registry may require. 09 * Sec. 29. AS 06.60 is amended by adding a new section to read: 10 Sec. 06.60.112. Branch office application. A mortgage licensee shall submit 11 an application to register a branch office to the department through the registry. The 12 department may adopt by regulation procedures and fees for the submission of an 13 application to register a branch office, consistent with the requirements of the registry. 14 The department may adopt by regulation fees and other requirements for renewal of a 15 branch office registration that are consistent with the requirements of the registry. 16 * Sec. 30. AS 06.60.130(a) is amended to read: 17 (a) The prior [WRITTEN] approval of the department is required for the 18 continued operation of a mortgage licensee's business when a change in control of the 19 mortgage licensee is proposed. The department may require the information it 20 considers necessary to determine whether a new application is required. The mortgage 21 licensee requesting approval of the change in control shall pay all reasonable expenses 22 incurred by the department to investigate and approve or deny the change in control. 23 The department may establish by regulation the fees and other requirements for 24 requesting approval of a change in control that are consistent with the 25 requirements of the registry. 26 * Sec. 31. AS 06.60.140 is amended to read: 27 Sec. 06.60.140. Availability of out-of-state records. A mortgage licensee 28 who operates an office or other place of business outside this state shall, at the request 29 of the department, 30 (1) make the records of the office or place of business available to the 31 department at a location within this state; or
01 (2) reimburse the department its reasonable costs, as provided in 02 AS 06.60.250(k) [AS 06.60.250(f)], that are incurred by the department in conjunction 03 with an investigation or examination conducted at the office or place of business. 04 * Sec. 32. AS 06.60.155 is amended to read: 05 Sec. 06.60.155. Restriction on mortgage loan originator licensee's 06 [LICENSEE] work. A mortgage loan [AN] originator licensee may only work as a 07 mortgage loan [AN] originator licensee under contract for, or as an employee of, one 08 mortgage licensee. 09 * Sec. 33. AS 06.60.157 is amended to read: 10 Sec. 06.60.157. Restrictions [MORTGAGE LICENSEE RESTRICTIONS] 11 on mortgage licensee's performance of mortgage loan originator activities. A 12 mortgage licensee may not perform mortgage loan originator activities except 13 through a licensed mortgage loan originator who is an employee of or under 14 exclusive contract with a mortgage licensee. 15 * Sec. 34. AS 06.60.159 is amended to read: 16 Sec. 06.60.159. Mortgage licensee's [LICENSEE] employment of, contract 17 with, and liability for mortgage loan originator. (a) A mortgage licensee may not 18 employ or enter into a contract with a person who acts as a mortgage loan [AN] 19 originator for the mortgage licensee unless the person has a mortgage loan [AN] 20 originator license. 21 (b) A mortgage licensee is liable for the conduct of a person acting as a 22 mortgage loan [AN] originator if the mortgage licensee knows or should have known 23 that the person's conduct violates this chapter and the person is employed by or is 24 under contract with the mortgage licensee to act as a mortgage loan [AN] originator. 25 * Sec. 35. AS 06.60.160 is repealed and reenacted to read: 26 Sec. 06.60.160. Continuing education requirements for mortgage loan 27 originators. (a) Each calendar year, a licensed mortgage loan originator shall 28 complete at least eight hours of education approved under (b) of this section. At a 29 minimum, these hours must include 30 (1) three hours of instruction in federal statutes and regulations; 31 (2) two hours of instruction in ethics, including instruction on issues
01 related to fraud prevention, consumer protection, and fair lending; and 02 (3) two hours of training related to lending standards for the 03 nontraditional mortgage product marketplace. 04 (b) For the purposes of (a) of this section, a continuing education course and 05 the course provider must be approved by the department. 06 (c) Nothing in this section precludes a continuing education course that is 07 approved by the department and that is provided by the employer of the applicant, an 08 entity affiliated with the applicant, or a subsidiary or affiliate of an employer or entity 09 affiliated with the applicant. 10 (d) Continuing education may be offered in a classroom, on-line, or by other 11 means approved by the department. 12 (e) A licensed mortgage loan originator 13 (1) except as provided by (i) of this section, may only receive credit for 14 a continuing education course in the calendar year in which the course is taken; and 15 (2) may not retake an approved course in the same or successive 16 calendar years if the mortgage loan originator has previously taken the course to meet 17 the annual requirements for continuing education. 18 (f) A licensed mortgage loan originator who is an approved instructor of an 19 approved continuing education course may receive credit for the licensed mortgage 20 loan originator's own annual continuing education requirement at the rate of two hours 21 of credit for each one hour taught. 22 (g) Successful completion of a continuing education course approved for 23 another state by the registry shall be accepted as credit toward completion of 24 continuing education requirements in this state. 25 (h) Before a new or renewed license may be issued to a licensed mortgage 26 loan originator who has become unlicensed, the mortgage loan originator shall 27 complete the continuing education requirements for the last calendar year in which the 28 mortgage loan originator's license was valid. 29 (i) A person meeting the requirements of AS 06.60.087, other than the 30 continuing education requirement of AS 06.60.087(a)(2), may make up a deficiency in 31 continuing education in a manner established by regulation.
01 * Sec. 36. AS 06.60.200 is repealed and reenacted to read: 02 Sec. 06.60.200. Disciplinary action. (a) In addition to other disciplinary action 03 allowed under this chapter or under AS 06.01, the department may deny, suspend, 04 revoke, condition, or decline to renew a license or take other disciplinary action 05 against a person subject to this chapter, including action under a regulation adopted 06 under this chapter, if the department finds that the person 07 (1) fails to comply with an applicable provision of this title, an 08 applicable regulation adopted under this title, a lawful demand, ruling, order, or 09 requirement of the department, or other state or federal statute or regulation applicable 10 to the conduct of the licensee's business; 11 (2) fails to meet the minimum standards for issuance or renewal of a 12 license; or 13 (3) knowingly withholds material information or negligently makes a 14 material misstatement in an application for or renewal of a license. 15 (b) The department may 16 (1) order a person subject to this chapter to cease and desist from 17 conducting business, including an immediate temporary order to cease and desist; 18 (2) order a person subject to this chapter to cease and desist from 19 violating this chapter, including an immediate temporary order to cease and desist; 20 (3) impose a fine on a person subject to this chapter under 21 AS 06.60.420; 22 (4) issue an order of rescission, restitution, or disgorgement directed to 23 a person subject to this chapter for a violation of this chapter; 24 (5) order other affirmative action that the department considers 25 necessary, including an accounting, an asset freeze, or the appointment of a receiver. 26 (c) A disciplinary action under this section may be taken by itself or in 27 conjunction with one or more other disciplinary actions under this chapter or under 28 AS 06.01. 29 * Sec. 37. AS 06.60.210 is amended to read: 30 Sec. 06.60.210. Suspension, [OR] revocation, or renewal related to fund. 31 (a) When an award is made from the fund, the department may suspend, [OR] revoke,
01 or decline to renew the license of the mortgage loan originator licensee whose 02 actions formed the basis of the award. 03 (b) The department shall lift a suspension made under (a) of this section if the 04 mortgage loan originator licensee reaches an agreement with the department on terms 05 and conditions for the repayment to the fund of the money awarded to the claimant 06 and the costs of hearing the fund claim. The department may reimpose the suspension 07 if the mortgage loan originator licensee violates the terms of a repayment agreement 08 entered into under this subsection. 09 * Sec. 38. AS 06.60.230 is amended to read: 10 Sec. 06.60.230. Divestment. If the department revokes a mortgage license [OR 11 A REGISTRATION OF A SMALL MORTGAGE LENDER], the mortgage licensee 12 [OR THE SMALL MORTGAGE LENDER] shall divest itself of all outstanding loans 13 that were issued under this chapter by selling or assigning them to another mortgage 14 licensee [OR SMALL MORTGAGE LENDER]. Divestment under this section must 15 be approved by the department. 16 * Sec. 39. AS 06.60.240 is amended to read: 17 Sec. 06.60.240. Reinstatement. The department may reinstate a suspended 18 [REVOKED] license [OR REGISTRATION UNDER AS 06.60.017] if the licensee 19 [OR SMALL MORTGAGE LENDER] complies with this chapter or with a demand, 20 ruling, or requirement made by the department under this chapter. Before 21 reinstatement of a license [OR REGISTRATION UNDER AS 06.60.017], the licensee 22 [OR SMALL MORTGAGE LENDER] shall pay any fees, restitution, and civil 23 penalties owing under this chapter. 24 * Sec. 40. AS 06.60.250 is repealed and reenacted to read: 25 Sec. 06.60.250. Investigation and examination authority. (a) For the purpose 26 of initial licensing, license renewal, license suspension, license conditioning, license 27 revocation, license termination, or general or specific inquiry or investigation to 28 determine compliance with this chapter, the department may access, receive, use, and 29 copy any books, accounts, records, files, documents, information, or evidence, 30 including 31 (1) criminal, civil, and administrative history information, including
01 nonconviction information; in this paragraph, "nonconviction information" has the 02 meaning given in AS 12.62.900; 03 (2) personal history and experience information, including independent 04 credit reports obtained from a consumer reporting agency; and 05 (3) other documents, information, and evidence the department 06 considers relevant to the inquiry or investigation, regardless of the location, 07 possession, or custody of the documents, information, or evidence. 08 (b) Notwithstanding AS 06.01.015, for the purpose of investigating violations 09 or complaints arising under this chapter, or for the purpose of examination, the 10 department may review, investigate, or examine an applicant, licensee, or another 11 person subject to this chapter as often as necessary to carry out the purposes of this 12 chapter. The department may conduct an examination without prior notice to the 13 licensee. 14 (c) A licensee or other person subject to this chapter shall make available to 15 the department, on request, the place of business, books, records, accounts, safes, and 16 vaults relating to the operations of the licensee or other person subject to this chapter. 17 The department may interview the officers, principals, mortgage loan originators, 18 employees, independent contractors, agents, and customers of the licensee or other 19 person subject to this chapter concerning the licensee's or other person's business. 20 (d) For the purpose of hearings, investigations, or other proceedings under this 21 chapter, the department or an officer designated by the department may administer 22 oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take 23 evidence, and require the production of books, papers, correspondence, memoranda, 24 agreements, or other documents or records that the department considers relevant or 25 material to the matter. 26 (e) If a person refuses to comply with a subpoena, the superior court, on 27 application by the department, may issue to the person an order requiring the person to 28 appear before the department to produce documentary evidence or to give evidence 29 regarding the matter under investigation or in question. 30 (f) A licensee or other person subject to this chapter shall make or compile 31 reports or prepare other information as directed by the department to carry out the
01 purposes of this section, including 02 (1) accounting compilations; 03 (2) information lists and data concerning loan transactions in a format 04 prescribed by the department; and 05 (3) other information considered necessary to carry out the purposes of 06 this section. 07 (g) In making an examination or investigation authorized by this chapter, the 08 department may control access to documents and records of the licensee or other 09 person under examination or investigation. The department may take possession of the 10 documents and records or place a person in exclusive charge of the documents and 11 records in the place where they are usually kept. During the period of control, a person 12 may not remove or attempt to remove any of the documents and records except under 13 a court order or with the consent of the department. In this subsection, "control" does 14 not have the meaning given in AS 06.60.990. 15 (h) To carry out the purposes of this section, the department may 16 (1) retain attorneys, accountants, or other professionals and specialists, 17 including examiners, auditors, or investigators, to conduct or assist in the conduct of 18 examinations or investigations; 19 (2) enter into agreements or relationships with other government 20 officials or regulatory associations to improve efficiency and reduce the regulatory 21 burden by sharing resources, standardized or uniform methods or procedures, and 22 documents, records, information, and evidence obtained under this section; 23 (3) use, hire, contract, or employ public or privately available 24 analytical systems, methods, or electronic software to examine or investigate the 25 licensee, individual, or other person subject to this chapter; 26 (4) accept and rely on examination or investigation reports made by 27 other government officials in this or another state; 28 (5) share information received or collected during an examination, 29 investigation, or other proceeding with other law enforcement agencies; or 30 (6) accept an audit report prepared by an independent certified public 31 accountant for the licensee or other person subject to this chapter and may incorporate
01 an audit report in the report of the examination or other writing of the department. 02 (i) The authority under this section remains in effect, whether or not a licensee 03 or other person subject to this chapter acts or claims to act under a licensing or 04 registration law of the state or claims to act without the authority of a licensing or 05 registration law of the state. 06 (j) A licensee or other person subject to investigation or examination under 07 this section may not knowingly withhold, abstract, remove, mutilate, destroy, or 08 secrete any books, records, computer records, or other information. 09 (k) A person shall reimburse the department for reasonable costs incurred by 10 the department to conduct an examination or investigation under this section. The 11 reimbursement under this subsection may not exceed the rate of $75 an hour for the 12 examination or investigation, plus travel costs, including a per diem allowance that 13 does not exceed the per diem allowance for employees of the state under 14 AS 39.20.110. 15 * Sec. 41. AS 06.60.260 is amended to read: 16 Sec. 06.60.260. Revocation, removal, or suspension of mortgage loan 17 originator licensee. If the department finds that a mortgage loan [AN] originator 18 licensee is dishonest, reckless, or incompetent when operating as a mortgage loan 19 [AN] originator or fails to comply with applicable law, with regulations or orders of 20 the department, or with written requirements or instructions of the department relating 21 to the mortgage loan originator license, the department may revoke or suspend the 22 mortgage loan originator license, remove the mortgage loan originator licensee from 23 operating as a mortgage loan [AN] originator in the state, or order a person licensed 24 under this title to remove the mortgage loan originator licensee from operating as a 25 mortgage loan [AN] originator for the person. 26 * Sec. 42. AS 06.60.270 is amended to read: 27 Sec. 06.60.270. Removal by entity. A mortgage licensee shall remove a 28 mortgage loan [AN] originator licensee from acting as a mortgage loan [AN] 29 originator for the mortgage licensee if the department directs the mortgage licensee to 30 remove the mortgage loan originator licensee under AS 06.60.260. 31 * Sec. 43. AS 06.60 is amended by adding a new section to article 4 to read:
01 Sec. 06.60.290. Report to the registry. Notwithstanding AS 06.01.025, the 02 department shall regularly report violations of this chapter, as well as enforcement 03 actions and other relevant information, to the registry, subject to provisions established 04 by the department by regulation. 05 * Sec. 44. AS 06.60.320 is amended to read: 06 Sec. 06.60.320. False, misleading, or deceptive advertising prohibited. A 07 person [, INCLUDING A SMALL MORTGAGE LENDER,] may not advertise, print, 08 display, publish, distribute, broadcast, or cause or permit to be advertised, printed, 09 displayed, published, distributed, or broadcast, in any manner a statement or 10 representation with regard to the rates, terms, or conditions for a mortgage loan that is 11 false, misleading, or deceptive. 12 * Sec. 45. AS 06.60 is amended by adding a new section to read: 13 Sec. 06.60.325. Display of unique identifier. A person operating as a 14 mortgage lender, mortgage broker, or mortgage loan originator shall clearly display 15 the unique identifier assigned to the person by the registry on all residential mortgage 16 loan application forms, solicitations, and advertisements, including business cards or 17 websites, and any other documents as established by regulation or order of the 18 department. 19 * Sec. 46. AS 06.60.330 is amended to read: 20 Sec. 06.60.330. Compliance with federal requirements. A person [, 21 INCLUDING A SMALL MORTGAGE LENDER,] subject to this chapter shall 22 conduct the person's mortgage loan activities in compliance with [12 CFR PART 226 23 AND OTHER REGULATIONS ADOPTED BY THE FEDERAL GOVERNMENT 24 UNDER] 25 (1) 12 U.S.C. 2601 - 2617 (Real Estate Settlement Procedures Act of 26 1974); 27 (2) 12 U.S.C. 2801 - 2810 (Home Mortgage Disclosure Act of 1975); 28 (3) 12 U.S.C. 2901 - 2908 (Community Reinvestment Act of 1977); 29 (4) 12 U.S.C. 5101 - 5116 (Secure and Fair Enforcement for 30 Mortgage Licensing Act of 2008); 31 (5) 15 U.S.C. 1601 - 1666j and 1671 - 1693r (Consumer Credit
01 Protection Act); 02 (6) [(5)] 42 U.S.C. 3601 - 3631 (Fair Housing Act of 1968); 03 (7) [(6)] any other federal statute the purpose of which is to regulate 04 residential mortgage lending; and 05 (8) regulations adopted under the statutes identified in (1) - (7) of 06 this section [LAW OR REGULATION]. 07 * Sec. 47. AS 06.60.340 is repealed and reenacted to read: 08 Sec. 06.60.340. Prohibited activities. In addition to activities prohibited 09 elsewhere in this chapter or by other law, a person who is a licensee, a person who is 10 required to be licensed under this chapter, and a person who is licensed under 11 AS 06.20 may not, in connection with a mortgage loan transaction, 12 (1) misrepresent or conceal a material fact or make a false promise 13 likely to influence, persuade, or induce an applicant for a mortgage loan or a borrower 14 to enter into a mortgage loan transaction; 15 (2) pursue a course of misrepresentation through an agent; 16 (3) directly or indirectly employ any scheme, device, or artifice to 17 defraud or mislead a borrower or lender or to defraud a person; 18 (4) engage in any unfair or deceptive act or practice toward any 19 person; 20 (5) obtain property by fraud or misrepresentation; 21 (6) solicit or enter into a contract with a borrower that provides, in 22 substance, that the person subject to this chapter may earn a fee or commission 23 through using the person's best efforts to obtain a loan, even though a loan is not 24 actually obtained for the borrower; 25 (7) solicit, advertise, or enter into a contract for specific interest rates, 26 points, or other financing terms unless the terms are actually available at the time of 27 soliciting, advertising, or contracting; 28 (8) conduct a business covered by this chapter without holding a valid 29 license as required under this chapter, or assist a person in the conduct of business 30 under this chapter without a valid license as required under this chapter; 31 (9) fail to make disclosures as required by this chapter or by another
01 applicable state or federal statute, including regulations adopted under the statute; 02 (10) fail to comply with this chapter or regulations adopted under this 03 chapter or fail to comply with another state or federal statute, including regulations 04 adopted under the statute, applicable to a business authorized or conducted under this 05 chapter; 06 (11) make, in any manner, false or deceptive statements or 07 representations, including statements or representations about rates, points, or other 08 financing terms or conditions, or engage in bait and switch advertising; 09 (12) negligently make a false statement or knowingly omit a material 10 fact in connection with information or reports filed with the department or the registry 11 or in connection with an investigation conducted by the department; 12 (13) make a payment, threat, or promise, directly or indirectly, to a 13 person for the purposes of influencing the independent judgment of the person in 14 connection with a mortgage loan, or make a payment, threat, or promise, directly or 15 indirectly, to an appraiser of a property, for the purpose of influencing the independent 16 judgment of the appraiser with respect to the value of the property; 17 (14) collect, charge, attempt to collect, attempt to charge, or use or 18 propose an agreement purporting to collect or charge a fee prohibited by this chapter; 19 (15) cause or require a borrower to obtain property insurance coverage 20 in an amount that exceeds the replacement cost, as established by the property insurer, 21 of the improvements; 22 (16) improperly refuse to issue a satisfaction of a mortgage loan; 23 (17) fail to account for or deliver to a person money, a document, or 24 another thing of value obtained in connection with a mortgage loan, including money 25 provided for a real estate appraisal or a credit report, if the person is not entitled to 26 retain the money under the circumstances; 27 (18) pay, receive, or collect, in whole or in part, a commission, fee, or 28 other compensation for brokering a mortgage loan in violation of this chapter, 29 including a mortgage loan brokered by an unlicensed person; 30 (19) fail to disburse money in accordance with a written commitment 31 or agreement to make a mortgage loan;
01 (20) engage in a transaction, practice, or course of business that is not 02 engaged in by the person in good faith or fair dealing or that constitutes a fraud on a 03 person in connection with the brokering, making, purchase, or sale of a mortgage loan; 04 (21) influence or attempt to influence, through coercion, extortion, or 05 bribery, the development, reporting, result, or review of a real estate appraisal sought 06 in connection with a mortgage loan; this paragraph does not prohibit a person from 07 asking an appraiser to 08 (A) consider additional appropriate property information; 09 (B) provide further detail, substantiation, or explanation for the 10 appraiser's value determination; or 11 (C) correct errors in the appraisal report; 12 (22) make a false or misleading statement in a mortgage loan 13 commitment or prequalification letter, or omit material information necessary to make 14 the statements made not misleading, if the person knew or reasonably should have 15 known the statement was false or misleading or the omission consisted of material 16 information necessary to make the statements made not misleading; 17 (23) engage in a practice or course of business in which the ultimate 18 rates, terms, or costs of mortgage loans are materially worse for the borrower than 19 they are represented to be in the first good faith estimates the person provides to the 20 borrower, unless 21 (A) the person's generally published or advertised rates, terms, 22 or costs, if any, change for a borrower's loan program; or 23 (B) new or changed information from the borrower makes it 24 necessary to change the loan program offered to the borrower; 25 (24) represent that the person has a license, registration, title, 26 certification, sponsorship, approval, status, affiliation, or connection that the person 27 does not have; 28 (25) engage in unfair, deceptive, or fraudulent advertising; or 29 (26) authorize, direct, plan, or aid in the publishing, distribution, or 30 circulation of a materially false statement or a material misrepresentation concerning 31 the licensee's business or concerning mortgage loans originated in the course of the
01 licensee's business in this or another state. 02 * Sec. 48. AS 06.60.360 is amended by adding a new subsection to read: 03 (f) In this section, "escrow account" means an account 04 (1) to which a borrower makes payments for obligations related to the 05 real property that is the subject of a residential mortgage loan of the borrower; 06 (2) held by a third person; and 07 (3) from which the third person identified in (2) of this subsection 08 disburses money in accordance with a written agreement to pay obligations related to 09 the real property that is the subject of a residential mortgage loan of the borrower. 10 * Sec. 49. AS 06.60.370 is amended to read: 11 Sec. 06.60.370. Criminal penalties [LIABILITY OF LICENSEE OR 12 SMALL MORTGAGE LENDER]. (a) The department may report a violation 13 [VIOLATIONS] of (b) - (e) of this section to the attorney general, who may institute 14 the proper proceedings to enforce the criminal penalties provided in (b) - (e) of this 15 section. 16 (b) A person [, INCLUDING A SMALL MORTGAGE LENDER,] who 17 knowingly provides false or misleading information to the department that is material 18 under this chapter is guilty of a class A misdemeanor. 19 (c) A [LICENSEE, PERSON WHO IS A SMALL MORTGAGE LENDER, 20 OR] person [WHO IS EXEMPT UNDER AS 06.60.015] who knowingly fails to 21 account for or deliver to a person money, deposits, or checks or other forms of 22 negotiable instruments in violation of the provisions of this chapter is guilty of a class 23 A misdemeanor. 24 (d) A licensee [OR A SMALL MORTGAGE LENDER] who knowingly fails 25 to disburse money belonging to the borrower without just cause is guilty of a class A 26 misdemeanor. 27 (e) Unless the person is exempt from licensing under this chapter, a 28 person [A MORTGAGE LENDER, MORTGAGE BROKER, OR ORIGINATOR] 29 who knowingly operates in this state as a mortgage lender, mortgage broker, or 30 mortgage loan originator without a license issued under this chapter [OR 31 WITHOUT BEING REGISTERED UNDER AS 06.60.017 AND IS NOT EXEMPT
01 UNDER AS 06.60.015] is guilty of a class A misdemeanor. 02 * Sec. 50. AS 06.60.400 is repealed and reenacted to read: 03 Sec. 06.60.400. Cease and desist proceedings. (a) Notwithstanding 04 AS 06.01.030(d) and (e), if the department finds, after notice and opportunity for a 05 hearing, that a person has violated, is violating, or is about to violate any provision of 06 this chapter, a regulation adopted under this chapter, or an order issued under this 07 chapter, the department may publish findings and enter an order requiring the person 08 to cease and desist from committing or causing the violation and any future violation 09 of the same provision or regulation. An order may, in addition to requiring a person to 10 cease and desist from committing or causing a violation, require the person to comply, 11 or to take steps to effect compliance, with a provision or regulation, on terms and 12 conditions and within a time, as the department may specify in the order. An order 13 may require future compliance or steps to result in future compliance, either 14 permanently or for a period of time, as the department may specify. 15 (b) Notwithstanding AS 06.01.030(d) and (e), if the department determines 16 that the alleged violation or threatened violation is likely to result in significant 17 dissipation or conversion of assets, significant harm to consumers, or substantial harm 18 to the public interest before the completion of cease and desist proceedings, the 19 department may enter a temporary order requiring the respondent to cease and desist 20 from the violation or threatened violation and to take action to prevent the violation or 21 threatened violation and to prevent dissipation or conversion of assets, significant 22 harm to consumers, or substantial harm to the public interest as the department 23 determines appropriate pending completion of the proceedings. A temporary order 24 may be entered only after notice and opportunity for a hearing, unless the department 25 determines that notice and hearing before entry would be impracticable or contrary to 26 the public interest. A temporary order becomes effective on service on the respondent 27 and, unless set aside, limited, or suspended by the department or a court of competent 28 jurisdiction, remains effective and enforceable pending the completion of the cease 29 and desist proceedings. 30 * Sec. 51. AS 06.60 is amended by adding a new section to read: 31 Sec. 06.60.405. Review of temporary cease and desist orders. (a) At any
01 time after the respondent has been served with a temporary cease and desist order 02 under AS 06.60.400(b), the respondent may apply to the department to have the order 03 set aside, limited, or suspended. If the respondent has been served with a temporary 04 cease and desist order entered without a prior hearing, the respondent may, within 10 05 days after the date on which the order was served, request a hearing on the application, 06 and the office of administrative hearings shall hold a hearing and render a decision on 07 the application under AS 44.64.060. A respondent served with a temporary cease and 08 desist order entered without a prior hearing may not apply to the court except after 09 hearing and decision by the department on the respondent's application under this 10 subsection. 11 (b) The commencement of proceedings under this section does not, unless 12 specifically ordered by the court, operate as a stay of the department's order. 13 (c) In a cease and desist proceeding under this section, the department may 14 issue an order to prohibit, conditionally or unconditionally, permanently or for a 15 period of time the department determines, a person who has violated this chapter from 16 operating as a mortgage lender, mortgage broker, or mortgage loan originator if the 17 conduct of that person demonstrates unfitness to operate as a mortgage lender, 18 mortgage broker, or mortgage loan originator. 19 * Sec. 52. AS 06.60.410 is amended to read: 20 Sec. 06.60.410. Censure, suspension, or bar. (a) In addition to any other 21 remedy provided under this chapter, the department may, by order after appropriate 22 notice and opportunity for a hearing, censure a person, suspend the license of a person 23 for a period not to exceed 12 months, [SUSPEND THE REGISTRATION OF A 24 SMALL MORTGAGE LENDER FOR A PERIOD NOT TO EXCEED 12 25 MONTHS,] or bar a person from a position of employment, management, or control 26 of a licensee [OR A SMALL MORTGAGE LENDER] if the department finds that 27 (1) the censure, suspension, or bar is in the public interest; 28 (2) the person has knowingly committed or caused a violation of this 29 chapter or a regulation adopted under this chapter; and 30 (3) the violation has caused material damage to the licensee [, TO THE 31 SMALL MORTGAGE LENDER,] or to the public.
01 (b) When a person who is the subject of a proposed order under this section 02 receives a notice of the department's intention to issue an order under this section, the 03 person is immediately prohibited from engaging in any activities for which a license 04 [OR REGISTRATION AS A SMALL MORTGAGE LENDER] is required under this 05 chapter. 06 (c) A person who is suspended or barred under this section is prohibited from 07 participating in a business activity of a licensee [OR A SMALL MORTGAGE 08 LENDER] and from engaging in a business activity on the premises where a licensee 09 [OR SMALL MORTGAGE LENDER] is conducting the licensee's [OR SMALL 10 MORTGAGE LENDER'S] business. This subsection may not be construed to prohibit 11 a suspended or barred person from having the person's personal transactions processed 12 by a licensee [OR A SMALL MORTGAGE LENDER]. 13 * Sec. 53. AS 06.60.420 is amended to read: 14 Sec. 06.60.420. Civil penalty for violations. (a) Notwithstanding 15 AS 06.01.035, a [A] person [, INCLUDING A SMALL MORTGAGE LENDER,] 16 who violates a provision of this chapter, or a regulation adopted or an order issued 17 under this chapter, is liable for a civil penalty not to exceed $10,000 for each violation. 18 (b) The remedies provided by this section and by other sections of this chapter 19 are not exclusive and may be sought [APPLIED] in combination with other remedies 20 to enforce the provisions of this chapter. 21 * Sec. 54. AS 06.60.430(a) is amended to read: 22 (a) The department may treat a licensee [OR A SMALL MORTGAGE 23 LENDER] as a financial institution under AS 06.01 when applying the enforcement 24 provisions of AS 06.01. 25 * Sec. 55. AS 06.60.430(c) is amended to read: 26 (c) If the department determines that a licensee [, A SMALL MORTGAGE 27 LENDER,] or a person acting on behalf of the licensee [OR SMALL MORTGAGE 28 LENDER] is in violation of, or has violated, a provision of this chapter, the 29 department may refer the information to the attorney general and request that the 30 attorney general investigate the violation under AS 45.50.495. The attorney general 31 may enjoin a violation of this chapter and may seek restitution, rescission, and other
01 relief as allowed by law. 02 * Sec. 56. AS 06.60.500 is amended to read: 03 Sec. 06.60.500. Mortgage loan originator [ORIGINATOR] surety fund. 04 The mortgage loan originator surety fund is established as a separate account in the 05 general fund. The purpose of the fund is to pay fund claims against mortgage loan 06 originator licensees. 07 * Sec. 57. AS 06.60.510 is amended to read: 08 Sec. 06.60.510. Composition of fund. The fund consists of appropriations of 09 payments made by mortgage loan originator licensees under AS 06.60.550, filing fees 10 for fund claims retained under AS 06.60.620, income earned on the investment of the 11 money in the fund, and money deposited in the fund by the department under 12 AS 06.60.740. 13 * Sec. 58. AS 06.60.550(a) is amended to read: 14 (a) A person who applies for or renews a mortgage loan [AN] originator 15 license shall pay to the department, in addition to the fees required by AS 06.60.035, a 16 fund fee established by the department [NOT TO EXCEED $150]. 17 * Sec. 59. AS 06.60.550(d) is amended to read: 18 (d) Notwithstanding (a) of this section, a mortgage loan [AN] originator 19 licensee who obtains an initial a mortgage loan originator license when the 20 department has reduced the fund fee to nothing shall nonetheless pay the [A] fund fee 21 established by regulation [OF $150] to the department for the first year of the 22 mortgage loan originator license [OR, FOR A MORTGAGE LICENSEE, OF 23 OPERATING AS AN ORIGINATOR]. 24 * Sec. 60. AS 06.60.560 is amended to read: 25 Sec. 06.60.560. Claim for reimbursement. In addition to any other remedies 26 available to the person, a person may seek reimbursement for a loss suffered in a 27 mortgage loan transaction as a result of fraud, misrepresentation, deceit, or the 28 wrongful conversion of money by a mortgage loan [AN] originator licensee and is 29 eligible to be reimbursed under AS 06.60.500 - 06.60.750 for the loss from money 30 appropriated for that purpose. 31 * Sec. 61. AS 06.60.580 is amended to read:
01 Sec. 06.60.580. Form and contents of fund claim. The form for a fund claim 02 shall be executed under penalty of unsworn falsification in the second degree and 03 must include 04 (1) the name and address of each mortgage loan originator licensee 05 involved; 06 (2) the amount of the alleged loss; 07 (3) the date or period of time during which the alleged loss occurred; 08 (4) the date when the alleged loss was discovered; 09 (5) the name and address of the claimant; and 10 (6) a general statement of the facts related to the fund claim. 11 * Sec. 62. AS 06.60.600 is amended to read: 12 Sec. 06.60.600. Filing and distribution of claim. At least 20 days before a 13 hearing is held on the fund claim by the office of administrative hearings 14 (AS 44.64.010), the department shall send a copy of the claim filed with the 15 department to 16 (1) each mortgage loan originator licensee alleged to have committed 17 the misconduct resulting in the alleged loss; 18 (2) the employer of the mortgage loan originator licensee described in 19 (1) of this section; and 20 (3) any other parties involved in the mortgage loan transaction that is 21 the subject of the fund claim. 22 * Sec. 63. AS 06.60.610(a) is amended to read: 23 (a) Within 30 [SEVEN] days after receiving a copy of a fund claim under 24 AS 06.60.600, a mortgage loan [EACH] originator licensee against whom a [THE] 25 claim is made may elect to defend the fund claim as a small claims action in district 26 court under District Court Rules of Civil Procedure if the claim does not exceed the 27 small claims jurisdictional limit. 28 * Sec. 64. AS 06.60.610(b) is amended to read: 29 (b) A mortgage loan [AN] originator licensee who elects under (a) of this 30 section to defend a fund claim in district court under the small claims rules may not 31 revoke the election without the consent of the person who filed the fund claim.
01 * Sec. 65. AS 06.60.640 is amended to read: 02 Sec. 06.60.640. Defense of claim. When the department receives a fund claim, 03 the department shall allow each mortgage loan originator licensee against whom the 04 claim is made an opportunity to file with the department, within seven days after 05 receipt of notification of the fund claim under AS 06.60.600, a written statement in 06 opposition to the fund claim and a request for a hearing. 07 * Sec. 66. AS 06.60.650 is amended to read: 08 Sec. 06.60.650. Standard of proof. A person who submits a fund claim under 09 AS 06.60.570 bears the burden of establishing by a preponderance of the evidence that 10 the person suffered a loss in a mortgage loan transaction as a result of fraud, 11 misrepresentation, deceit, or the conversion of trust funds by a mortgage loan [AN] 12 originator licensee and the extent of those losses. 13 * Sec. 67. AS 06.60.680(b) is amended to read: 14 (b) If the department determines that the claimant has suffered a loss in a 15 mortgage loan transaction as a result of fraud, misrepresentation, deceit, or the 16 wrongful conversion of money by a mortgage loan [AN] originator licensee, the 17 department may award the person who filed the fund claim reimbursement from 18 money appropriated to the fund. 19 * Sec. 68. AS 06.60.690 is amended to read: 20 Sec. 06.60.690. Fund operations. The department shall deposit into the fund 21 money that the department recovers from a mortgage loan [AN] originator licensee 22 under AS 06.60.745. The department may not consider amounts paid from the fund for 23 hearing or legal expenses when determining the maximum reimbursement to be 24 awarded under AS 06.60.710 or the maximum liability for fund claims under 25 AS 06.60.710. 26 * Sec. 69. AS 06.60.700(a) is amended to read: 27 (a) If a fund claim dismissed under AS 06.60.610 results in a monetary award 28 against a mortgage loan [AN] originator licensee, the department may pay, subject to 29 AS 06.60.710 and 06.60.720, any outstanding portion of the small claims judgment 30 from money appropriated to the department for the purpose. 31 * Sec. 70. AS 06.60.700(b) is amended to read:
01 (b) Before making payment under (a) of this section, the person who received 02 the award shall file with the department a copy of the final judgment and an affidavit 03 stating that more than 30 days have elapsed since the judgment became final and that 04 the judgment has not yet been satisfied by the mortgage loan originator licensee 05 against whom the award was made. 06 * Sec. 71. AS 06.60.710(b) is amended to read: 07 (b) The maximum liability for fund claims against one mortgage loan 08 originator licensee may not exceed $50,000. 09 * Sec. 72. AS 06.60.710(c) is amended to read: 10 (c) If the $50,000 liability limit under (b) of this section is insufficient to pay 11 in full the valid fund claims of all persons who have filed fund claims against one 12 mortgage loan originator licensee, the $50,000 shall be distributed among the 13 claimants in the ratio that their individual fund claims bear to the aggregate of valid 14 fund claims against that mortgage loan originator licensee. The department shall 15 distribute the money among the persons entitled to share in the recovery without 16 regard to the order in which their fund claims were filed. 17 * Sec. 73. AS 06.60 is amended by adding a new section to read: 18 Sec. 06.60.715. Other rights of claimant. The rights granted to a claimant 19 under AS 06.60.500 - 06.60.750 do not limit any other cause of action the claimant 20 may have against a mortgage loan originator. 21 * Sec. 74. AS 06.60.745 is amended to read: 22 Sec. 06.60.745. Reimbursement for expenses. If the department pays all or a 23 portion of a fund claim against a mortgage loan [AN] originator licensee under 24 AS 06.60.680 or 06.60.700, the department may recover from the mortgage loan 25 originator licensee, in addition to the payment of the fund claim, the expenses incurred 26 by the department to process and otherwise handle the fund claim. 27 * Sec. 75. AS 06.60.750 is amended to read: 28 Sec. 06.60.750. Disciplinary action against a mortgage loan [AN] 29 originator licensee. Repayment in full of all obligations to the fund does not nullify or 30 modify the effect of disciplinary proceedings brought against a mortgage loan [AN] 31 originator licensee under this chapter.
01 * Sec. 76. AS 06.60.800 is amended by adding a new subsection to read: 02 (e) The program administration fees collected under this section shall be 03 separately accounted for and may be appropriated by the legislature to the department 04 for the operation of this chapter. 05 * Sec. 77. AS 06.60.850 is amended to read: 06 Sec. 06.60.850. Publication of disciplinary action. The department may 07 release, through the Internet, the registry, or other [FOR] publication, [IN A 08 NEWSPAPER OF GENERAL CIRCULATION IN THE LOCALE OF A 09 LICENSEE'S PRINCIPAL OFFICE] notice of disciplinary action taken by the 10 department against a person required to be licensed under this chapter [THE 11 LICENSEE]. 12 * Sec. 78. AS 06.60.890 is amended to read: 13 Sec. 06.60.890. Application to Internet activities. This chapter applies to a 14 person [, INCLUDING A SMALL MORTGAGE LENDER TO THE EXTENT THIS 15 CHAPTER APPLIES TO A SMALL MORTGAGE LENDER,] even if the person is 16 engaging in the activities regulated by this chapter by using an Internet website from 17 within or outside the state. 18 * Sec. 79. AS 06.60.900 is amended to read: 19 Sec. 06.60.900. Applicability of administrative procedures. 20 Notwithstanding AS 06.01.030(f), the [THE] provisions of AS 44.62 (Administrative 21 Procedure Act) apply to an action of the department to deny, revoke, or suspend a 22 license under this chapter, to censure, suspend, or bar a person under AS 06.60.410, to 23 take other disciplinary action under this chapter, to hold disciplinary hearings, and to 24 issue disciplinary orders. 25 * Sec. 80. AS 06.60.905 is amended to read: 26 Sec. 06.60.905. Untrue, misleading, or false statements. A person [, 27 INCLUDING A SMALL MORTGAGE LENDER,] may not, in a document filed with 28 the department or in an examination, an investigation, a hearing, or another proceeding 29 under this chapter, make or cause to be made an untrue statement of a material fact, or 30 omit to state a material fact necessary in order to make the statement made, in the light 31 of the circumstances under which it is made, not misleading or false.
01 * Sec. 81. AS 06.60.990 is repealed and reenacted to read: 02 Sec. 06.60.990. Definitions. In this chapter, unless the context otherwise 03 requires, 04 (1) "borrower" means an individual who receives a mortgage loan; 05 (2) "consumer reporting agency" means a consumer reporting agency 06 that compiles and maintains files on consumers on a nationwide basis; in this 07 paragraph, "consumer reporting agency that compiles and maintains files on 08 consumers on a nationwide basis" has the meaning given in 15 U.S.C. 1681a(p) (Fair 09 Credit Reporting Act); 10 (3) "control" means the power, directly or indirectly, to direct the 11 management or policies of a company, whether through ownership of securities, by 12 contract, or otherwise; an individual is presumed to control a company if the 13 individual 14 (A) is a director, general partner, or executive officer, including 15 chief executive officer, chief financial officer, chief operations officer, chief 16 legal officer, chief credit officer, or chief compliance officer, or occupies a 17 similar position or performs a similar function; 18 (B) directly or indirectly, has the right to vote 10 percent or 19 more of a class of voting security or has the power to sell or direct the sale of 20 10 percent or more of a class of voting securities; 21 (C) in the case of a limited liability company, 22 (i) is a managing member; 23 (ii) is a member who has the right to receive on 24 dissolution, or has contributed, 10 percent or more of the capital of the 25 limited liability company; or 26 (iii) if the limited liability company is managed by 27 elected or appointed managers, is an elected or appointed manager; or 28 (D) in the case of a partnership, has the right to receive on 29 dissolution, or has contributed, 10 percent or more of the capital; 30 (4) "control person" means an individual described in the uniform 31 mortgage lender and mortgage broker application form of the registry who directly or
01 indirectly exercises control over the applicant; 02 (5) "department" means the Department of Commerce, Community, 03 and Economic Development; 04 (6) "depository institution" has the meaning given in 12 U.S.C. 1813 05 (Federal Deposit Insurance Act) and includes a credit union; 06 (7) "dwelling" means a residential structure or mobile home that 07 contains one to four family housing units, or the individual units of condominiums or 08 cooperatives; 09 (8) ''federal banking agency'' means the Board of Governors of the 10 Federal Reserve System, the Comptroller of the Currency, the director of the Office of 11 Thrift Supervision, the National Credit Union Administration, and the Federal Deposit 12 Insurance Corporation; 13 (9) "fund" means the mortgage loan originator surety fund established 14 under AS 06.60.500; 15 (10) "fund claim" means a claim against the fund; 16 (11) "fund fee" means the fee required to be paid by AS 06.60.550; 17 (12) "individual" means a natural person; 18 (13) "knowingly" has the meaning given in AS 11.81.900(a); 19 (14) "license" means a license issued under this chapter; 20 (15) "licensed mortgage loan originator" means a person who holds a 21 mortgage loan originator license issued under this chapter; 22 (16) "licensee" means a person who holds a license issued under this 23 chapter; 24 (17) "loan processor or underwriter" means an individual who 25 performs clerical or support duties as an employee at the direction of and subject to the 26 supervision and instruction of a person required to be licensed or exempt from 27 licensing under this chapter; in this paragraph, "clerical or support duties" includes, 28 subsequent to the receipt of an application, 29 (A) the receipt, collection, distribution, and analysis of 30 information common for the processing or underwriting of a mortgage loan; 31 and
01 (B) communicating with a consumer to obtain the information 02 necessary for the processing or underwriting of a loan, to the extent that the 03 communication does not include offering or negotiating loan rates or terms or 04 counseling consumers about mortgage loan rates or terms; 05 (18) "mortgage broker" means a person who, for compensation or gain, 06 or in the expectation of compensation or gain, directly or indirectly, by telephone, by 07 electronic means, by mail, through the Internet, in person, or by the person itself or a 08 mortgage loan originator, 09 (A) arranges with a variety of lending sources, including 10 private lenders, institutional investors, or wholesale lenders, to provide 11 financing for mortgage loans; or 12 (B) assists or offers to assist a borrower or potential borrower 13 to obtain financing for a mortgage loan; 14 (19) "mortgage lender" 15 (A) means a person who consummates and funds a mortgage 16 loan and who is named as the payee in the promissory note and as the 17 beneficiary of the deed of trust; 18 (B) does not include a subsequent purchaser of a mortgage loan 19 or an interest in a mortgage loan that is originated by a licensee under this 20 chapter; 21 (20) "mortgage license" means a license issued under this chapter to 22 operate as a mortgage lender or a mortgage broker; 23 (21) "mortgage licensee" means a person who holds a mortgage 24 license; 25 (22) "mortgage loan" means a loan that is primarily for personal, 26 family, or household use and that is secured by a mortgage, deed of trust, or other 27 equivalent consensual security interest on a dwelling or residential property on which 28 a dwelling is constructed or intended to be constructed; 29 (23) "mortgage loan originator" 30 (A) means an individual who, for compensation or gain, or in 31 the expectation of compensation or gain,
01 (i) takes a mortgage loan application; or 02 (ii) offers or negotiates terms of a mortgage loan; 03 (B) does not include an individual who is not otherwise 04 described in (A) of this paragraph and who is engaged solely as a loan 05 processor or underwriter on behalf of a person described in (A) of this 06 paragraph, except as provided in AS 06.60.013; 07 (C) does not include an individual who only performs real 08 estate brokerage activities and is licensed or registered under applicable state 09 law, unless the individual is compensated by a lender, a mortgage broker, or 10 another mortgage loan originator, or by an agent of the lender, mortgage 11 broker, or other mortgage loan originator; in this subparagraph, ''real estate 12 brokerage activity'' means an activity that involves offering or providing real 13 estate brokerage services to the public, including 14 (i) acting as a real estate agent or real estate broker for a 15 buyer, seller, lessor, or lessee of real property; 16 (ii) bringing together parties interested in the sale, 17 purchase, lease, rental, or exchange of real property; 18 (iii) negotiating, on behalf of a party, a portion of a 19 contract relating to the sale, purchase, lease, rental, or exchange of real 20 property other than in connection with providing financing with respect 21 to the transaction; 22 (iv) engaging in an activity for which a person engaged 23 in the activity is required to be registered or licensed as a real estate 24 agent or real estate broker under an applicable law; and 25 (v) offering to engage in an activity, or act in a capacity, 26 described in (i), (ii), (iii), or (iv) of this subparagraph; and 27 (D) does not include a person solely involved in extensions of 28 credit relating to timeshare plans; in this subparagraph, "timeshare plan" has 29 the meaning given in 11 U.S.C. 101 (Bankruptcy Code); 30 (24) "mortgage loan originator license" means a license issued to a 31 person to operate as a mortgage loan originator;
01 (25) "Nationwide Mortgage Licensing System and Registry" has the 02 meaning given in 12 U.S.C. 5102 (Secure and Fair Enforcement for Mortgage 03 Licensing Act of 2008); 04 (26) "nontraditional mortgage product" means a mortgage product 05 other than a 30-year fixed-rate mortgage; 06 (27) "operate" means hold out, do business, offer to provide services, 07 or provide services; in this paragraph, "hold out" means to represent to the public, 08 through advertising or other means of communicating or providing information, 09 including the use of business cards, stationery, brochures, signs, rate lists, or other 10 promotional items, that the person can or will perform an activity for which a license 11 is required under this chapter; 12 (28) "operate in the state" includes operating in the state from a 13 location outside the state or from an Internet website that originates inside or outside 14 the state; 15 (29) "program administration fee" means the fee described under 16 AS 06.60.800(a); 17 (30) "record" means information that is inscribed on a tangible 18 medium or that is stored in an electronic or other medium and is retrievable in 19 perceivable form; 20 (31) "registered mortgage loan originator" means an individual who 21 (A) is a mortgage loan originator and is an employee of 22 (i) a depository institution; 23 (ii) a subsidiary that is owned and controlled by a 24 depository institution and regulated by a federal banking agency; or 25 (iii) an institution regulated by the Farm Credit 26 Administration; and 27 (B) is registered with the registry and maintains a unique 28 identifier with the registry; 29 (32) "registry" means the Nationwide Mortgage Licensing System and 30 Registry; 31
01 (33) "residential mortgage loan" means a mortgage loan for residential 02 real property; 03 (34) "residential property" means real property located in the state on 04 which a dwelling is constructed or intended to be constructed; 05 (35) "unique identifier" means a number or other identifier assigned to 06 a licensee by protocols established by the registry. 07 * Sec. 82. AS 06.60.995 is amended to read: 08 Sec. 06.60.995. Short title. This chapter may be known as the Alaska Secure 09 and Fair Enforcement for Mortgage Licensing Act of 2010 [MORTGAGE 10 LENDING REGULATION ACT]. 11 * Sec. 83. AS 12.62.400 is amended to read: 12 Sec. 12.62.400. National criminal history record checks for employment, 13 licensing, and other noncriminal justice purposes. To obtain a national criminal 14 history record check for determining a person's qualifications for a license, permit, 15 registration, employment, or position, a person shall submit the person's fingerprints to 16 the department with the fee established by AS 12.62.160. The department may submit 17 the fingerprints to the Federal Bureau of Investigation to obtain a national criminal 18 history record check of the person for the purpose of evaluating a person's 19 qualifications for 20 (1) a license or conditional contractor's permit to manufacture, sell, 21 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 22 under AS 04.11; 23 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 24 loan [AN] originator under AS 06.60; 25 (3) admission to the Alaska Bar Association under AS 08.08; 26 (4) licensure as a collection agency operator under AS 08.24; 27 (5) a certificate of fitness to handle explosives under AS 08.52; 28 (6) licensure to practice nursing or certification as a nurse aide under 29 AS 08.68; 30 (7) a position involving supervisory or disciplinary power over a minor 31 or dependent adult for which criminal justice information may be released under
01 AS 12.62.160(b)(9); 02 (8) a teacher certificate under AS 14.20; 03 (9) licensure as a security guard under AS 18.65.400 - 18.65.490; 04 (10) a concealed handgun permit under AS 18.65.700 - 18.65.790; 05 (11) licensure as an insurance producer, managing general agent, 06 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 07 broker, or independent adjuster under AS 21.27; 08 (12) serving and executing process issued by a court by a person 09 designated under AS 22.20.130; 10 (13) a school bus driver license under AS 28.15.046; 11 (14) licensure as an operator or an instructor for a commercial driver 12 training school under AS 28.17; 13 (15) registration as a broker-dealer, agent, investment adviser 14 representative, or state investment adviser under AS 45.55.030 - 45.55.060. 15 * Sec. 84. AS 12.62.400 is amended by adding a new subsection to read: 16 (b) Notwithstanding (a) of this section, an applicant for a license under 17 AS 06.60 may submit the applicant's fingerprints to the Nationwide Mortgage 18 Licensing System and Registry. In this subsection, "Nationwide Mortgage Licensing 19 System and Registry" has the meaning given in 12 U.S.C. 5102. 20 * Sec. 85. AS 06.60.017, 06.60.025, 06.60.065, 06.60.070, 06.60.075, 06.60.090(i), 21 06.60.097(b), 06.60.105, 06.60.145, 06.60.150, 06.60.440, 06.60.540, 06.60.810, and 22 06.60.870 are repealed. 23 * Sec. 86. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITION: EXISTING LICENSES ISSUED UNDER FORMER AS 06.60; 26 LICENSES AFTER JULY 1, 2010. (a) A person holding a valid license issued under former 27 AS 06.60, on or before July 1, 2010, may continue to operate under that license until the 28 license expires, is revoked, or is suspended, and, except as provided by (c) of this section, this 29 Act, including its provisions on expiration, renewal, prohibitions, revocation, suspension, and 30 enforcement, applies to the license and to the person's operation under the license. 31 (b) A person who is not licensed under former AS 06.60 before July 1, 2010, and files
01 an application for licensing under this Act on or after July 1, 2010, shall comply with the 02 requirements of this Act to receive a license under this Act. 03 (c) AS 06.60.027, as repealed and reenacted by sec. 8 of this Act, does not apply to 04 the renewal of a mortgage license valid on July 1, 2010, except for a mortgage license 05 application amendment submitted on or after July 1, 2010, requesting approval of a change of 06 a control person. In this subsection, "control person" and "mortgage license" have the 07 meanings given in AS 06.60.990. 08 * Sec. 87. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 TRANSITION: TEMPORARY FEES AND BOND AMOUNT. (a) If the regulations 11 adopted by the Department of Commerce, Community, and Economic Development under 12 sec. 88 of this Act do not take effect July 1, 2010, then, during the period of July 1, 2010, 13 until the effective date of the regulations adopted under sec. 88 of this Act, 14 (1) notwithstanding AS 06.60.035(a), as amended by sec. 9 of this Act, the 15 application fee under AS 06.60.035(a)(1), as amended by sec. 9 of this Act, shall be $250, and 16 the license fee under AS 06.60.035(a)(2), as amended by sec. 9 of this Act, shall be $500; 17 (2) notwithstanding AS 06.60.045(a), as amended by sec. 14 of this Act, the 18 amount of the bond under AS 06.60.045(a), as amended by sec. 14 of this Act, shall be 19 $25,000; 20 (3) notwithstanding AS 06.60.550(a), as amended by sec. 58 of this Act, the 21 amount of the fund fee under AS 06.60.550(a), as amended by sec. 58 of this Act, shall be 22 $150; and 23 (4) notwithstanding AS 06.60.550(d), as amended by sec. 59 of this Act, the 24 amount of the fund fee under AS 06.60.550(d), as amended by sec. 59 of this Act, shall be 25 $150. 26 * Sec. 88. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITION: REGULATIONS. (a) The Department of Commerce, Community, 29 and Economic Development may adopt regulations necessary to implement this Act. The 30 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before July 1, 31 2010.
01 (b) The department shall notify the revisor of statutes of the date on which the 02 regulations take effect. 03 * Sec. 89. Section 88 of this Act takes effect immediately under AS 01.10.070(c). 04 * Sec. 90. Except as provided in sec. 89 of this Act, this Act takes effect July 1, 2010.