Purpose of the Report
The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2026, and will have one year from that date to conclude its administrative operations.
Report Conclusions
The commission served the public’s interest by effectively conducting its meetings, actively amending regulations, and effectively licensing real estate professionals.
The audit also found areas for improvement. The commission did not consistently keep minutes for subcommittee meetings and did not update its regulations and forms to include licensees who are independent contractors. Commission related investigations were not conducted in a timely manner, and the Real Estate Recovery Fund appeared to no longer be necessary. Further, the commission did not monitor compliance with insurance coverage requirements.
In accordance with AS 08.03.010(c)(19), the commission is scheduled to terminate on June 30, 2026. We recommend that the legislature extend the commission’s termination date four years to June 30, 2030, which is half of the eight year maximum allowed by statute. The reduced extension reflects the need for more routine oversight to ensure timely corrective action.
Findings and Recommendations
- The Division of Corporations, Business and Professional Licensing (DCBPL) director should provide training and update written procedures to ensure minutes are prepared for all commission meetings as required by law.
- The commission chair should ensure commission regulations and forms are updated to include independent contractors.
- DCCED’s commissioner should work with policy makers to improve the recruitment and retention of investigators, and DCBPL management should consider ways to assist the commission in clearing its investigative backlog.
- The commission should consider seeking legislation to eliminate the Real Estate Recovery Fund.
- The commission should require license renewal applicants to submit a certificate of errors and omissions insurance coverage, or seek a statutory change.