Insurance & Commerce- House

We have just a little bit of housekeeping to do at this at this stage Watson Warren you're recognized. Thank you Mr chairman I would like to make a motion that we adopt the procedures for use of health benefit actuary. Thank you there's been a motion made by represent Warren and what this is going to do is is a motion to adopt the procedures that were instituted and explain to us by BLR at the last meeting after the meeting we were contacted and asked to actually make that a formal motion and adopt it so we have a motion on the table to adopt that is there any discussion on the motion. Saying no discussion all in favor of the motion say aye. Any opposed motion carries thank you. The statute. Okay I believe representative rate that I see representative ray yes Sir you're recognized to present your bill. If you would just introduce yourself and I don't see any witnesses but introduce yourself and right David Ray state representative district sixty nine. Thank you Mr chairman colleagues it's good to be back in insurance and commerce I'm sorry I'm not back with you this time around on this committee but glad to have the opportunity to present house bill ten forty this bill would repeal the Arkansas legal insurance act if this sounds familiar it's because I brought this bill to the Committee two years ago and we we passed it ninety four nothing in the house and went to the Senate where I think they got tired of running House bills at the end of session so anyway I'll go back over just briefly what it does the legal insurance act was written in the nineteen seventies and has not been updated since that time what it what it really refers to legal insurance really refers to is what's known today as legal plans so most legal plans today are not what we would think of is insurance in the typical way we think about insurance what they are today is typically a subscription based prepaid legal plan the way it works is the user will pay a monthly fee and in exchange for that the they'll get access to a local attorney and a basic set of services things like document review basic consultation will preparation things of that nature and then there beyond about what's included in the basic services they can get a discounted rate that's pre negotiated for things above and beyond that a lot of times individuals will by these plans you know much like you'd buy a. Triple a membership for roadside assistance or something like that a lot of times businesses will buy these plans in the offer to their employees as a employee benefit at another thing that's worth noting is the sales associates for companies that sell these legal plans they have to be licensed by the state in order to sell them and it's really not a license either in the way that we think of licensure there's no education requirements there's no testing there's no training involved the only requirement is that they pay a bi annual fee to the state so it's basically a license just for the sake of licensure there's thirty three states that never regulated this area as occupational licensing of the of the states that did a majority of those of repealed their their licensure and in fact in the last couple of years believe Arizona Nebraska Tennessee and Texas have repealed their requirements as well so basically the bill just conforms Arkansas law to match what most day to done in this area which is not to regulate it and eliminates an unnecessary licensure so that's what the bill does. Thank you are sent away or the questions by the committee. Okay. Seeing no questions about the committee no one signed up but there's or anyone in the audience would like to speak for or against this bill. Okay no one is signed up to speak there's no one there representa LUNDSTRUM you're recognized for motion mission do pass. We have a motion to pass I represent Lundstrum is there any discussion on the motion. No discussion with a motion do pass what is the will of the committee on the motion. All in favor say aye. In the opposed. Motion carries graduation representative ray of pastor bill okay thank you Committee. The representative Vaught I believe is yes there she is you're recognized. Thank you Mr chairman. Good morning everybody. We'll remember back. Last session several of the might remember that I tried to pass a bill similar to this bill and. And I want to thank the leaders of the real stuff Arkansas realtors association for sitting down with the leaders of the home builders and working during the interim to come up with something that they could both live with and I appreciate their leadership in working on this bill this bill simply allows the sales of employees at a licensed home builder to help sale its own property just like an individual is allowed to sell his or her own property it is common for a licensed real estate development and homebuilding company to have sales employees these employees work exclusively for that company and simply facilitate the sale of the inventory owned by their employer and lack licensed realtors they do not represent the public or any other sellers or buyers of real estate in the open market. Because the sale employees do not represent the public can only sell property for their employer these sales employees do not provide services like a licensed real estate agent however in Arkansas the sales employees are still required to obtain a real estate license simply to sell the property of their employer. These but this would be like requiring you are allowed to have a real estate license before we could sell our own property this bill adds an exemption to the existing real estate license law to allow these sales employees to only sell the property of their employer without a need for a real estate license but only if certain conditions are met. And. Every so this bill was drafted I pledge to you that this bill was drafted in cooperation with the Arkansas real estate commission and has been approved by both the A. R. E. C. and the board of realtors a legislative committee every single states surrounding us already has an exemption like this this helps Arkansas to stay current and competitive and attract more great home building companies to Arkansas and keep sales jobs here in our state in order for a sales employee to qualify for this exemption several conditions must be met the exemption only applies to sales employees who work for a licensed Arkansas homebuilding company and that company mast employee license principal broker to be responsible for the sales employees even though they are not licensed that broker can still be held accountable by a are easy even though the sales employees are not licensed. The employees the sales employees must provide a written disclosure to any potential by buyer advising them that the employee only represents the seller and the buyer has the right to hire his or her own estate agent if they choose. The sales employee cannot workers sale for multiple employers at the same time the exemption only applies to the sale of brand new build homes by the employer this bill improve removes unnecessary red tape and allows more Arkansans to find great sales jobs in Arkansas but still provide consumer protection for the public. Thank you will provide questions by the committee. Representative you're recognized for a question. Thank you some just trying to follow this so if the home builder. Is selling his or her own inventory I get that part why do they need a principal broker because date that employees all after this will no longer need their real estate license so they need that broker the we need somebody who and. To be held accountable and. And ability. Okay. I'm kind of confused on why you need the principal broker if you don't need a real estate license to sell them and or without fully agree with. Another question. Since the. Salesman it's only representing. The builder the inventory do they have to provide a disclosure to the purchaser that they do not have a fiduciary duty to the buyer this act thank you. Thank you representatives any further questions about the committee. Okay saying that at this time we do have we do have members of the public of signed up to speak on behalf of this bill it appears that Josh Carson if he's in the room is signed up to speak for this bill the okay I'm getting worried that it is not necessary there are. Three other services who have been signed up Polit Richey. Okay let me ask does anyone want to speak for or against this bill. Okay thank you. Reserve I would you like to close for your bill I'll close not I hope that we'll get a do pass on here. I think represent Johnson was first with the motion do pass. That is a proper motion and will take discussion on the motion at this time. Wouldn't give discussion on the motion of colleagues I don't know how many of you are familiar with how these folks work and the. I just allows for sure with you that in my community and baby there are up I don't know ninety maybe a hundred homes and maybe another fifty or sixty to be built by one of these farms. If it were not for them they were the there there are many many other income. They would not have the ability are access to a new home. And and in addition to that there are many elderly folks who also. Purchase the salt. And they they have made a tremendous impact upon the the home life if you will of individuals living within the to them and to be busy and they have a very very helpful and very very good citizens in our community in the end in providing affordable homes and I have been in the construction business and built all up on the on her own company the only difference between and we sold she sold her own homes individually and the only difference between being a small builder like she was or being a a a a a developer like these are is back it's just they just sell more homes but to sell their own home with one of the bill and the other people of the the the other they don't sell any of anyone else's property but their own so they make a tremendous economic contribution and those employed several people so I just wanted to want to share that with you because we are familiar with how they operate thank you Mr Speaker. Thank you for. The. Thank you for waiting any further discussion on the motion. Okay we have a motion do pass and all in favor of the motion say aye. Any opposed say no. Congradulations represent value faster bill thank you thank you Committee. I believe represent Allen would you like to run ten forty two. Thank you Mr chairman and members House Bill fourteen on to actually and two thousand nine I passed a prostate cancer ACT this call at seventy five and what ACT seventy five provide is prostate screening for all me and beginning at the age of forty now what this bill will do today is just simply going to bring us into guidelines of twenty twenty three nothing in the bill is going to change there was no financial impact statement and the only thing that is going to do this is with us in line with what the what the NCCN guidelines say if a two thousand twenty three that's simply it. Thank you representative Alan of any questions by the committee. Thank you no one signed up but is there anyone in the audience who would like to speak for or against this bill. Okay saying no one represent only like to close for your bill I'm closed closed and I say motor Assy represent one you're recognized. Motion do pass by represent one that is a proper motion is there any discussion on the motion. No discussion however we have a motion do pass by representative one all in favor say aye. It posay no. Regulations when the pastor bill thank you I'll let the record reflect K. Ferguson asked me if I was on my way to a funeral four thousand. The record reflect that I'm not. Thank you Allen. Members I do not see anyone else who is wanting to run a bill that's on the agenda for today we do have just a couple of housekeeping measures we will have a picture at nine forty five next Wednesday Wednesday so we are just a little early let's try to do that and then have the meeting at ten o'clock to nine forty five everyone be ready for that Okay I do want to commend the committee for something that is very important we're doing a good job of laying the restaurant or open it's very important so thank you for that member open when you leave. Close when you're in there yes. Thank.