REALTORS 2012 Legislative Priorities

Submitted by Dave Somers, 2012 Industry Issues Chairman

Without knowing whether proper accounting was used, it is hard to tell if we won or lost the recent license fee increase, but we certainly softened the blow by reducing the renewal fee to $375.00 from $685.00. There was an incredible effort put forth by a large number of our members that brought close scrutiny by our legislators forcing the division to rethink their position. Not only did this save licensees approximately $750,000.00, it forced a complete review of how the division allocates costs and accounts for our money. The fee increase was the first part of the battle. Now we follow up by keeping the issue on the front burner until things are headed in the right direction. There is also an outside consultant that has been hired by the state to review and make recommendations to the cost allocation analysis process. This review will be completed during this legislative session. An internal review brought about by our industries reaction to the questionable accounting practices already showed that the real estate licensees were paying 16% too much in the allocation of the general pool in the division. We will also be following the discussion on how fines levied in the real estate sector can be properly credited back to us.

The following is a list of bills we will be monitoring or involved with this session:

HB 267 by Munoz and Olson: This is a bill that AAR put together to address three issues. The first item this bill covers is the temporary assignment of a licensee to oversee the affairs of a real estate business by the real estate commission in the event the broker has been misappropriating trust funds. The flaw in our statutes was made very apparent in a recent case where a broker had “borrowed” approximately $150,000.00 of trust funds and the same broker was left in charge of the trust funds to close things out because there was no other option. The second area covered is on AS08.88.398. This statute was changed years ago to allow a licensee to pay another licensee as an assistant. The law at that time mandated that only the employing broker could pay a licensee. Even though the law clearly states otherwise, some have interpreted this to mean that they can have licensed assistants that have their license hanging in a different office. The language added to our current bill clarifies that a licensed assistant has to have their license hanging in the same office. The last area this bill covers deals with licensees donating part of their commission to charities. Current law does not allow this. The bill, if passed as filed, states that a licensee may contribute part of their commission to a charitable organization  and advertise their intent to do so. 

HB 264 – Sponsored by Munoz – “An Act allowing a deferral of municipal property taxes on the increase in the value of real property attributable to subdivision of that property; and providing for an effective date.”

HB 90 – Sponsors: Neuman & Feige – An Act relating to municipal property tax exemptions on residences of certain seniors and others; and providing for an effective date.”

 SB 122 – “An Act relating to real estate transfer fees and increasing the length of time title records must be maintained by a title plant.”

 HB 240 – Sponsor: Chenault – “An Act relating to the replacement of a personal use cabin that is destroyed by a wild land fire or other act of God; and providing for an effective date.”

 SB 104 – Sponsor: French – “An Act relating to manufactured homes, including manufactured homes permanently affixed to land, to the conversion of manufactured homes to real property, to the severance of manufactured homes from real property, to the titling, conveyance, and encumbrance of manufactured homes, and to manufacturers’ certificates of origin for vehicles; and providing for an effective date.”

 SB 157 – “An Act allowing an insurer to cancel an insurance policy if property becomes unoccupied and the vacancy increases the hazard insured against.”

We are also still looking at changes to the Landlord Tenant Act in the areas of how long a broker should have to refund deposits, definition of wear and tear and finding a way to mandate that carpets should be cleaned in certain circumstances. We have not filed a bill here as we feel we need more input and direction.