The 26th Alaska State Legislature, 2009 - 2010||
Sponsor Statement: House Bill 129
Power To Revoke Real Estate Licenses
“Relating to the authority of the Real Estate Commission to revoke licenses of persons convicted of certain crimes.”
Posted: March 27, 2009 : v26-LS0558\R
Bill Version: CSHB 129(RLS)
Status: Chapter 54 SLA 09 : 2009-07-09
CS for House Bill 129 (RLS) makes a simple, but needed, correction to existing law. Under current law, the Alaska Real Estate Commission must revoke the license of a real estate broker or associate broker if that person is convicted of a felony or other crime committed while licensed that, in the judgment of the commission, affects the ability of that person to practice as a broker or associate broker competently and safely or who is convicted of forgery, theft, extortion, conspiracy to defraud creditors, or fraud. Unfortunately this current law does not apply to real estate salespersons.
HB 129 simply adds "salesperson" to the statute and thereby enables the Real Estate Commission to likewise revoke the license of a salesperson who commits the same listed crimes. HB 129 also clarifies that the Alaska Real Estate Commission has the authority not only to revoke, but also to refuse to grant or renew the license of a salesperson who was convicted of the listed offenses at a time before the effective date of HB 129.
The need for this legislation came to the attention of the Real Estate Commission after a licensed real estate salesperson was indicted on five counts of bribery, money laundering, and importing a controlled substance. After reaching a plea agreement, all but the drug trafficking charges were dropped. After the guilty plea was entered on the drug trafficking charge, the Real Estate Commission discovered that they had no power to revoke this real estate salesperson's license and after serving the sentence imposed, the real estate salesperson continued to work in a field where customers place faith in their agent's trustworthiness and ability to follow the laws of the State of Alaska to the letter.
As of November 2008 there were 1460 real estate salespersons licensed in Alaska; compared to only 411 associate brokers and 483 brokers. With so many real estate salespersons licensed in Alaska, the urgency and need for this bill is clear. HB 129 empowers the Real Estate Commission to appropriately regulate its profession including revoking a salesperson's license and it protects the public interest.