Sponsor Statement for HB 33

Sponsor Statement for CSHB 33 (FIN) am

CSHB 33 (FIN) am, An Act relating to real estate licensees, was introduced at the request of the Real Estate Commission (hereinafter "Commission"), and its appointed task force, with the intent of enhanced consumer protection. The most significant changes to the law are: including community association managers in real estate licensing; strengthening the language prohibiting unlicensed activities; expanding educational requirements; increasing the Commission’s scope of authority; and expanding the exemptions for property management. The length of this bill is due to the many technical language revisions and housekeeping changes.

The need for new legislation became obvious after the indictment, and subsequent conviction, of a manager for various community associations on charges stemming from the embezzlement of $570,000 from 18 separate community associations in Anchorage. Currently, anyone can undertake this activity and, with the exception of criminal law, there is no legal protection for the public.

In 1994, the Commission appointed a Task Force to review the significant number of recent consumer complaints and surety fund claims filed regarding property managers and also discussed the consumer losses brought about by some community association manager activities. CSHB 33 (FIN) am is the result of suggestions made by: the Commission’s Task Force, members of the real estate community, community association managers, and the public.

The licensure of community association managers will provide the consumer with (1) more qualified managers, (2) recourse to surety fund and fidelity bond recovery, and (3) a licensing agency to oversee those who have a fiduciary responsibility to the public.

The other changes made by the bill are to assure the public that all real estate licensees in Alaska follow certain guidelines. Payments to non-licensed individuals and "marketing kickback" mechanisms ("affinity" groups) are strictly prohibited under this legislation.

The legislation expands the exemptions under current law, and will not impact individuals who (a) manage their own property, (b) manage four or fewer residential units for another, or, if more than four units, without a fee (except for expenses), (c) manage as a resident manager, or (d) manage as a member of a self-managed association.

I urge your support of this legislation.

ED4: 2/27/98

Sponsor Statement for CSHB 33 (FIN)

CSHB 33 (FIN), An Act relating to real estate licensees, was introduced at the request of the Real Estate Commission (hereinafter "Commission"), and its appointed task force, with the intent of enhanced consumer protection. The most significant changes to the law are: including community association managers in real estate licensing; strengthening the language prohibiting unlicensed activities; expanding educational requirements; increasing the Commission’s scope of authority; and expanding the exemptions for property management. The length of this bill is due to the many technical language revisions and housekeeping changes.

In 1994, the Commission appointed a Task Force to review the significant number of recent consumer complaints and surety fund claims filed regarding property managers and also discussed the consumer losses brought about by some community association manager activities. CSHB 33 (FIN) is the result of suggestions made by: the Commission’s Task Force, members of the real estate community, community association managers, and the public.

I urge your support of this legislation.

ED3:2/20/98

Sponsor Statement for CSHB 33 (L&C)

CSHB 33 (L&C), An Act relating to real estate licensees, was introduced at the request of the Real Estate Commission (hereinafter "Commission"), and its appointed task force, with the intent of enhanced consumer protection. The most significant changes to the law are: including community association managers in real estate licensing; strengthening the language prohibiting unlicensed activities; expanding educational requirements; increasing the Commission’s scope of authority; and expanding the exemptions for property management. The length of this bill is due to the many technical language revisions and housekeeping changes.

In 1994, the Commission appointed a Task Force to review the significant number of recent consumer complaints and surety fund claims filed regarding property managers and also discussed the consumer losses brought about by some community association manager activities. CSHB 33 (L&C) is the result of suggestions made by: the Commission’s Task Force, members of the real estate community, community association managers, and the public.

The licensure of community association managers will provide the consumer with

more qualified managers,
recourse to surety fund and fidelity bond recovery, and
a licensing agency to oversee those who have a fiduciary responsibility to the public.

The legislation expands the exemptions under current law, and will not impact individuals who

manage their own property,
manage four or fewer residential units for another,
manage as a resident manager, or
manage as a member of a self-managed association.

I urge your support of this legislation.

Ed2:2/6/98

Sponsor Statement for HB 33

House Bill 33, An Act relating to real estate licensing and the real estate surety fund, was introduced at the request of the Real Estate Commission (hereinafter "Commission") and a number of interested Alaskans. Its main purposes are to license property managers and community association managers, and help protect the citizens of Alaska. The length of this bill is due to the many technical language revisions, e.g. from "real estate broker, associate broker or salesman" terminology to "real estate services licensees" terminology. The bill also contains many housekeeping changes.

Licensure of property managers and community association managers is needed and would assure an increased level of competence, knowledge of Alaskan laws, continuing education and oversight by the Commission. Such managers have duties and responsibilities to their clients and often have control over large sums of money. Problems have occurred when unscrupulous managers have converted or embezzled operating and trust funds. In 1995 a case involving a community association manager who embezzled funds from 17 associations occurred.

In January of 1994, the Commission discussed the significant number of recent consumer complaints and surety fund claims filed regarding property managers and also discussed the consumer losses brought about by some community association manager's activities. A Task Force was appointed to consider recommendations for changes to the current law. In January of 1995, the Task Force reported back to the Commission and began work on drafting legislation. HB 33 is the result of the suggestions made by that Task Force and also incorporates a number of the recommendations made by members of the real estate community after the original draft was circulated statewide by the sponsor.

The licensure of property managers and community association managers will provide the consumers with (1) some assurance that they are dealing with a qualified practitioner, (2) a mechanism to file complaints and, if warranted, receive a hearing, and (3) a licensing agency to oversee those who have a fiduciary responsibility to the public. The legislation will not impact individuals who (a) manage their own property, (b) manage four or fewer residential units for another, or (c) are a resident manager.

Your support of this legislation would be appreciated.

Ed1:3/13/97