Legislature(2009 - 2010)CAPITOL 120

03/24/2009 05:00 PM House RULES

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05:02:30 PM Start
05:02:39 PM HB129
05:09:21 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
Moved CSHB 129(RLS) Out of Committee
Bills Previously Heard/Scheduled
HB 129-REVOKING REAL ESTATE SALESPERSON LICENSES                                                                              
5:02:39 PM                                                                                                                    
CHAIR COGHILL announced that the  only order of business would be                                                               
HOUSE  BILL NO.  129, "An  Act  providing authority  to the  Real                                                               
Estate Commission  to revoke real estate  salesperson licenses of                                                               
persons convicted of certain crimes."                                                                                           
5:03:06 PM                                                                                                                    
MARGARET DOWLING, Staff, Representative  Jay Ramras, Alaska State                                                               
Legislature, explained  that HB 129 makes  a necessary correction                                                               
to the existing law.  Under  existing law, the Alaska Real Estate                                                               
Commission must  revoke the license  of a broker or  an associate                                                               
broker  if either  was convicted  of  forgery, theft,  extortion,                                                               
conspiracy  to defraud  creditors, or  fraud.   However, the  law                                                               
doesn't  apply to  real estate  sales  people.   With over  1,400                                                               
licensed sales people  in the state and only 483  brokers and 411                                                               
associate brokers  as of November 2008,  the need is clear.   Ms.                                                               
Dowling explained  that after the  legislation was  reported from                                                               
the  House Labor  and Commerce  Standing Committee,  the Attorney                                                               
General's  Office  contacted  the   sponsor  and  offered  a  few                                                               
proposals to clarify the intent  of the legislation.  The sponsor                                                               
agreed to the changes, and  thus the legislation and an amendment                                                               
is before the committee today.                                                                                                  
MS. DOWLING  outlined the  changes to  the Amendment  A.1 labeled                                                               
26-LS0558\A.1, Bullard, 3/16/09, which read:                                                                                    
     Page 1, line 1:                                                                                                            
          Delete "providing authority to"                                                                                     
          Insert "relating to the authority of"                                                                               
     Page 1, lines 1 - 2:                                                                                                       
          Delete "real estate salesperson"                                                                                    
     Page 3, line 24:                                                                                                           
          Delete "for"                                                                                                          
          Insert "to obtain or renew [FOR]"                                                                                 
     Page 3, line 25:                                                                                                           
          Delete "AS 08.88.171(a) or (b)"                                                                                       
          Insert "AS 08.88.171(a) - (c) [AS 08.88.171(a) OR                                                                 
     Page 3, following line 26:                                                                                                 
     Insert a new bill section to read:                                                                                         
         "* Sec. 2. The uncodified law of the State of                                                                      
     Alaska is amended by adding a new section to read:                                                                         
          APPLICABILITY. Section 1 of this Act applies to                                                                       
      criminal convictions for offenses occurring before,                                                                       
     on, or after the effective date of this Act."                                                                              
MS. DOWLING  explained that the  changes to  page 1, line  1, and                                                               
page 1,  lines 1-2,  merely change the  title of  the legislation                                                               
such  that  it  conforms  to   the  [other  changes  embodied  in                                                               
Amendment A.1]  and reflects  the somewhat  broader scope  of the                                                               
language.  She related that the  change to existing law by HB 129                                                               
would allow the Alaska Real  Estate Commission to refuse to grant                                                               
a license or to  deny the renewal of a license  for those who had                                                               
been convicted  of one of  the listed  crimes.  The  new language                                                               
suggested for  page 3,  line 24, as  specified in  Amendment A.1,                                                               
would  clarify the  aforementioned intent.   The  language change                                                               
proposed  on page  3, line  25,  is a  conforming amendment  that                                                               
refers  to AS  08.88.171(a)-(c), which  applies to  salespersons.                                                               
Therefore, it's clear  that the legislation applies  to all three                                                               
categories  of   licenses:    brokers,  associate   brokers,  and                                                               
salespersons.  The proposed change  on page 3, following line 26,                                                               
adds a  new section clarifying  the legislative  intent regarding                                                               
the applicability to sales people  who may have been convicted of                                                               
the listed  offenses prior  to passage of  this legislation.   In                                                               
other words,  if one was  convicted of  one of the  listed crimes                                                               
the day prior  to the effective date of this  legislation and the                                                               
individual  applied  for renewal,  this  change  would allow  the                                                               
Alaska   Real  Estate   Commission  to   deny  renewal   of  that                                                               
individual's  license.   Again,  the  intent  is to  protect  the                                                               
public  interest, empower  the Alaska  Real Estate  Commission to                                                               
appropriately  regulate their  own profession,  and includes  the                                                               
power  to revoke,  refuse  to  grant, or  to  deny  renewal of  a                                                               
salesperson's license if convicted of the listed offenses.                                                                      
5:06:52 PM                                                                                                                    
REPRESENTATIVE OLSON moved to adopt  Amendment A.1 [text provided                                                               
CHAIR COGHILL objected.                                                                                                         
5:07:05 PM                                                                                                                    
REPRESENTATIVE GARDNER  inquired as  to the difference  between a                                                               
real  estate agent,  real estate  sales person,  and real  estate                                                               
MS.  DOWLING  answered  that statute  distinguishes  between  the                                                               
following three different categories:   broker, associate broker,                                                               
and  salesperson.   Each category  has specific  requirements for                                                               
education and  hours spent.   She related her  understanding that                                                               
all of them refer to themselves as licensees.                                                                                   
5:08:10 PM                                                                                                                    
REPRESENTATIVE  KERTTULA  related   her  understanding  that  the                                                               
legislation  is merely  bringing  real estate  sales people  into                                                               
conformance with what  is existing law for  brokers and associate                                                               
MS. DOWLING replied yes.                                                                                                        
5:08:42 PM                                                                                                                    
CHAIR COGHILL  withdrew his  objection.   There being  no further                                                               
objection, Amendment A.1 was adopted.                                                                                           
5:08:56 PM                                                                                                                    
REPRESENTATIVE HERRON moved to report  HB 129, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  129(RLS)  was                                                               
reported from the House Rules Standing Committee.                                                                               

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