CARL T.C. GUTIERREZ GOVERNOR OF GUAM

W r to v= SecretluY CARL T.C. GUTIERREZ GOVERNOR OF GUAM MAY 2 6 1999 OFFICE OF Ti:- I.cc:;,~;!; CECR ETmy The Honorable Antonio R. Unpingco Speaker I Mina'Bente Singko na Liheslaturan Guihan Twenty-Fifth Guam Legislature Guam Legislature Temporary Building 155 ~esler Street Haggtna, Guam 96910 Dear Speaker Unpingco: Enclosed please find Substitute Bill No. 4 (COR), "AN ACT TO REPEAL AND REENACT $5 104203, 104204, 104205, 104206, 104207, 104208, 104209, AND 104210, AND ADD $10421 1, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING REAL ESTATE BROKERS LICENSES", which was vetoed and subsequently overridden by i Liheslatura. This legislation is now designated as Public Law No. 25-21. Very truly yours, /? I Maga'Lahen Gughan Governor of Guam Attachment: copy attached for signed bill or overridden bill original attached for vetoed bill cc: The Honorable Joanne M. S. Brown Legislative Secretary Omrs nf the speah A%TljhtC! C' pt ~JCO Date: %j84)!9 J Tim '/DrC/S. 1. * r. rs L Rw'd by: Prlnr %me: - / Ricardo J. Bordallo Governor's Complex Post Office Box 2950, Agana, Guam 96932 (671)472-8931 Fax (671)477-GUAM

MINA'BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) Regular Session CERTTFICATION OF PASSAGE OF AN ACT TO I MAGA'LAHEN GUAHAN This is to certify that Substitute Bill No. 4 (LS), "AN ACT TO REPEAL AND REENACT ~~104203,104204,104205,104206,104207,104208,104209 AND 104210, AND ADD 5104211, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATnTE TO UPDATING AND IMPROVING REAL ESTATE BROKERS LICENSES," returned without approval of I Maga'lahen Guahan, was reconsidered by I Liheslaturan Guahan and after such consideration, did agree, on the 24'h day of May, 1999, to pass said bill notwithstanding the veto of I Maga'lahen Guahan by a vote of thirteen (13) members. I0 R. UNPINGCO Speaker Senator and Legislative Secretary This Act was received by I Maga'lahen Guahan this d5-f day of 1999, at K35- o'clock &.M. -%- %a Assistant Staff Officer Maga'lahi's Office h Public Law No. 25-21

MINA'BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) Regular Session Bill No. 4 (LS) As substituted by the Committee on Housing, General Government Services and Foreign Affairs and as amended on the Floor. Introduced by: A. R. Unpingco F. B. Aguon, Jr. K. S. Movlan E. C. Bermudes A. C. Blaz J. M.S. Brown E. B. Calvo M. G. Camacho Mark Forbes L. F. Kasperbauer A.C. Lamorena, V C. A. Leon Guerrero V. C. Pangelinan J. C. Salas S. A. Sanchez, I1 AN ACT TO REPEAL AND REENACT 104203, 104204, 104205, 104206 104207, 104208, 104209AND 104210, AND ADD 104211, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING REAL ESTATE BROKERS LICENSES. 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2 Section 1. Legislative Findings and Intent. 1 Liheslaturan Gudhan 3 finds that the public interest is better served by the addition of a continuing

1 education real estate requirement for salespersons and brokers to enhance 2 their skills and knowledge as professional Realtors. Furthermore, I 3 Liheslaturan Guihan finds that based on the existing statute, no ~ublic interest 4 is served by the requirement of renewal exams for real estate salespersons and 5 brokers. However, the public and consumers' interest will be enhanced by 6 requiring real estate professionals to be more knowledgeable in handling real 7 estate transactions. Therefore, I Liheslaturan Guihan is of the opinion that the 8 proposed continuing education requirement for brokers and salespersons 9 should replace the antiquated exam renewal provision. 10 The intent of I Liheslaturan Guihan of these changes in the statutes is to 11 require salespersons and brokers: (a) to take additional real estate courses to 12 improve their knowledge of the real estate practice rather than taking the 13 same exam over again; (b) to ensure that salespersons and brokers meet 14 minimum standards of proficiency and competence regarding real estate 15 transactions; and (c) to regulate the scope of practice for real estate 16 salespersons and brokers in the interest of consumer protection. 17 Section 2. Section 104203 of Article 2, Chapter 104, Division 3 of Title 18 21 of the Guam Code Annotated is hereby repealed and reenacted to read as 19 follows: 20 "Section 104203. Condition Precedent to Issuance of Original 21 Real Estate Broker's License. The Real Estate Commission shall not 22 issue a real estate broker's license to any person who has not held an 23 original real estate salesman's license for at least two (2) years prior to 24 the date of his application for the broker's license, and during such time 25 was not actively engaged in the business of real estate salesman, except,

1 if an applicant for a real estate broker's license having at least an 2 equivalent of two (2) years general real estate experience and have 3 satisfactorily completed a real estate course of instruction res scribed 4 and approved by the commissioner, of at least ninety (90) classroom 5 hours conducted by an accredited college or university or its equivalent 6 of instruction in a real estate school or certified by the commissioner, or 7 graduation from an accredited college or university with a degree in real 8 estate, business, accounting, finance or any related field, files a written 9 petition with the department setting forth his qualification and 10 experience, and the Real Estate Commissioner approves, the applicant 11 may be issued a real estate broker's license immediately upon passing 12 the appropriate examination and satisfying the other requirements of 13 this Article." 14 Section 3. Section 104204 of Article 2, Chapter 104, Division 3 of Title 15 21 of the Guam Code Annotated is hereby repealed and reenacted to read as 16 follows: 17 "Section 104204. Application for Salesman's License. 18 Application for license as a real estate salesman shall be made in writing 19 to the Commissioner. The applications shall be signed by the applicant, 20 and shall be accompanied by the real estate salesman's license fee; and 21 by the recommendation of the broker, who is to be the applicant's 22 employer, certifying that the applicant is honest, truthful and of good 23 reputation and evidence of satisfactory completion of the basic real 24 estate fundamental course prescribed and approved by the 25 Commissioner, of at least thirty (30) classroom hours, or its equivalent."

Section 4.. Section 104205 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104205. Requirement of Other Proof Before Authorizing License; Hearing. The Commissioner may require such other proof as the Commissioner may deem advisable concerning the honesty, truthfulness and good reputation of any applicant for a real estate license, or of the officers of any corporation, or of the members of any co-partnership making such application, before authorizing the issuance of a real estate license. For this purpose the Commissioner may call a hearing in accordance with the provisions of this Division relating to hearings." Section 5. Section 104206 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104206. Written Examination. In addition to the proof of honesty, truthfulness and good reputation required of any applicant for a real estate license, the Commissioner shall ascertain by written examination that the applicant, and in case of a co-partnership or corporation applicant, for a real estate broker's license that each officer, agent or member thereof through whom it proposes to act as a real estate licensee, has: (a) appropriate knowledge of the English language, including reading, writing, and spelling and of elementary arithmetic;

(b) a fair understanding of the rudimentary principles of real estate conveyancing, the general purposes and general legal effects of deeds, mortgages, land contracts of sale and leases, and of the elementary principles of land economics and appraisals; (c) a general and fair understanding of the obligations between principal and agent, of the principles of real estate practice and the canons of business ethics pertaining thereto, as well as the provisions of the Title 21 of the Guam Code Annotated, relating to real estate; and (d) have satisfactorily completed a real estate course prescribed and approved by the Commissioner of at least thirty (30) classroom hours, or its equivalent, of instructions in a real estate school certified by the Commissioner." Section 6. Section 104207 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104207. Original Real Estate License Term. All original real estate licenses issued by the Commissioner shall be for a period of two (2) years and the holder thereof shall not become eligible for a renewal real estate license until one has successfully completed the Continuing Education Requirement outlined in I04209 of this Act." Section 7. Section 104208 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows:

"Section 104208. (a) Broker's Renewal. Continuing Education Requirement for Anytime prior to renewal of an original broker's license, the broker must satisfactorily furnish the evidence of successful completion of an additional ninety (90) classroom hours of study selected among the following: (1) real estate practice; (2) real estate appraisal; (3) property management; (4) real estate finance; (5) legal aspect of real estate; (6) real estate office administration; (7) general accounting; (8) business law; (9) escrow; (10) real estate contracts, or any (11) real estate oriented study area. (b) Of the ninety (90) classroom hours, eighteen (18) classroom hours must be in the consumer protection area of study: (1) land use regulation; (2) consumer disclosure; (3) agency relationship; (4) fair practices; (5) environmental regulation and considerations; (6) taxation (real estate transaction); and (7) probate.

Section 8. (c) Thereafter all broker's renewal shall be for a ~eriod of four (4) years with a continuing education requirement of sixteen (16) hours every two (2) years. Should the broker acquire more than the sixteen (16) hours during the two (2) year ~eriod, the excess hours may be credited to future renewal requirements." Section 104209 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104209. Continuing Education Requirement for Salesperson Renewal. Any time prior to renewal of an original license the salesperson must satisfactorily furnish evidence of successful completion of an additional forty-five (45) classroom hours of study in 5104208 (a)(l) or (2). Thereafter, all salesperson renewals should be for a period of four (4) years with a continuing education requirement of twelve (12) hours every two (2) years. Should a salesperson acquire more than the minimum of twelve (12) hours during the two (2) year period, the excess hours may be credited to future renewal requirements." Section 9. Section 104210 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby rcpealed and reenacted to read as follows: "Section 104210. Exemption from Continuing Education Requirement. The Real Estate Commissioner shall grant an exemption to persons with an original real estate broker's or salespersons license to any person who has been issued a license for

fifteen (15) consecutive years, or has attained the age of seventy (70) years." Section 10. Section 104211 is hereby added to Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated to read as follows: "Section 104211. Substitution of Continuing Education Requirement. The Real Estate Commissioner may allow for substitution of the clock hour requirements, if the Commissioner makes a determination that the individual is otherwise and similarly qualified by reason of completion of equivalent educational coursework in any accredited institution of higher learning or any degree granting accredited institution." Section 11. Severability. If any provision of this Law or its application to any person or circumstance is found to be invalid or contrary to law, such invalidity shall not affect other provisions or applications of this Law which can be given effect without the invalid provisions or application, and to this end the provisions of this Law are severable.

MINA' BENTE SINGKO NA LIHESLATURAN GUAHAN TWENTY-FIFTH GUAM LEGISLATURE 1.55 Hesler Stree, Hag&& Guam 96910 1 May 25,1999 The Honorable Carl T.C. Gutierrez I Maga'lahen Gudhan Ufisinan I Maga'lahi Hagdtiia, Guam 96910 Dear Maga'lahi Gutierrez: Transmitted herewith are Substitute Bill No. 4 (LS) and Bill No. 67 (COR) which were overridden by I Mina'Bente Singko Na Liheslaturan Gudhan on May 24,1999, notwithstanding your veto. Sincerely, Enclosure (2) Senator and Legislative Secretary

MINA'BENTE SINGKO NA LMESLATURAN GUAHAN 1999 (FIRST) Regular Session This is to certify that Substitute Bill No. 4 (LS), "AN ACT TO REPEAL AND REENACT ~~104203,104204,104205,104206,104207,104208,104209 AND 104210, AND ADD 9104211, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING REAL ESTATE BROKERS LICENSES," returned without approval of I Maga'lahen Guahan, was reconsidered by I Liheslaturan Guahan and after such consideration, did agree, on the 24* day of May, 1999, to pass said bill notwithstanding the veto of I Maga'lahen Guahan by a vote of thirteen (13) members. /I I I0 R. UNPINGCO Speaker Senator and Legislative Secretary This Act was received by IMagarlahen Guahan this d* 1999, at 9 3~ o'clock day of APPROVED: Assistant Staff Officer Maga'lahi's Office CARL T. C. GUTIERREZ I Maga'lahen Guahan Date: Public Law No.

MINA'BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) Regular Session Bill No. 4 (LS) As substituted by the Committee on Housing, General Government Services and Foreign Affairs and as amended on the Floor. Introduced by: A. R. Unpingco F. B. Aguon, Jr. K. S. Movlan E. C. Bermudes A. C. Blaz J. M.S. Brown E. B. Calvo M. G. Camacho Mark Forbes L. F. Kasperbauer A.C. Lamorena, V C. A. Leon Guerrero V. C. Pangelinan J. C. Salas S. A. Sanchez, I1 AN ACT TO REPEAL AND REENACT #104203, 104204, 104205, 104206 104207, 104208, 104209AND 104210, AND ADD 104211, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING REAL ESTATE BROKERS LICENSES. 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2 Section 1. Legislative Findings and Intent. I Liheslaturnn Guihnn 3 finds that the public interest is better served by the addition of a continuing

education real estate requirement for salespersons and brokers to enhance their skills and knowledge as professional Realtors. Furthermore, I Likeslaturan Guiikan finds that based on the existing statute, no public interest is served by the requirement of renewal exams for real estate salespersons and brokers. However, the public and consumers' interest will be enhanced by requiring real estate professionals to be more knowledgeable in handling real estate transactions. Therefore, I Likeslaturan Guiikan is of the opinion that the proposed continuing education requirement for brokers and salespersons should replace the antiquated exam renewal provision. The intent of I Likeslaturan Guiikan of these changes in the statutes is to require salespersons and brokers: (a) to take additional real estate courses to improve their knowledge of the real estate practice rather than taking the same exam over again; (b) to ensure that salespersons and brokers meet minimum standards of proficiency and competence regarding real estate transactions; and (c) to regulate the scope of practice for real estate salespersons and brokers in the interest of consumer protection. Section 2. Section 104203 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104203. Condition Precedent to Issuance of Original Real Estate Broker's License. The Real Estate Commission shall not issue a real estate broker's license to any person who has not held an original real estate salesman's license for at least two (2) years prior to the date of his application for the broker's license, and during such time was not actively engaged in the business of real estate salesman, except,

1 if an applicant for a real estate broker's license having at least an 2 equivalent of two (2) years general real estate experience and have 3 satisfactorily completed a real estate course of instruction prescribed 4 and approved by the commissioner, of at least ninety (90) classroom 5 hours conducted by an accredited college or university or its equivalent 6 of instruction in a real estate school or certified by the commissioner, or 7 graduation from an accredited college or university with a degree in real 8 estate, business, accounting, finance or any related field, files a written 9 petition with the department setting forth his qualification and 10 experience, and the Real Estate Commissioner approves, the applicant 11 may be issued a real estate broker's license immediately upon passing 12 the appropriate examination and satisfying the other requirements of 13 this Article." 14 Section 3. Section 104204 of Article 2, Chapter 104, Division 3 of Title 15 21 of the Guam Code Annotated is hereby repealed and reenacted to read as 16 follows: 17 "Section 104204. Application for Salesman's License. 18 Application for license as a real estate salesman shall be made in writing 19 to the Commissioner. The applications shall be signed by the applicant, 20 and shall be accompanied by the real estate salesman's license fee; and 21 by the recommendation of the broker, who is to be the applicant's 22 employer, certifying that the applicant is honest, truthful and of good 23 reputation and evidence of satisfactory completion of the basic real 24 estate fundamental course prescribed and approved by the 25 Commissioner, of at least thirty (30) classroom hours, or its equivalent."

Section 4. Section 104205 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104205. Requirement of Other Proof Before Authorizing License; Hearing. The Commissioner may require such other proof as the Commissioner may deem advisable concerning the honesty, truthfulness and good reputation of any applicant for a real estate license, or of the officers of any corporation, or of the members of any co-partnership making such application, before authorizing the issuance of a real estate license. For hs purpose the Commissioner may call a hearing in accordance with the provisions of this Division relating to hearings." Section 5. Section 104206 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104206. Written Examination. In addition to the proof of honesty, truthfulness and good reputation required of any applicant for a real estate license, the Commissioner shall ascertain by written examination that the applicant, and in case of a co-partnership or corporation applicant, for a real estate broker's license that each officer, agent or member thereof through whom it proposes to act as a real estate licensee, has: (a) appropriate knowledge of the English language, including reading, writing, and spelling and of elementary arithmetic;

(b) a fair understanding of the rudimentary principles of real estate conveyancing, the general purposes and general legal effects of deeds, mortgages, land contracts of sale and leases, and of the elementary principles of land economics and appraisals; (c) a general and fair understanding of the obligations between principal and agent, of the principles of real estate practice and the canons of business ethics pertaining thereto, as well as the provisions of the Title 21 of the Guam Code Annotated, relating to real estate; and (d) have satisfactorily completed a real estate course prescribed and approved by the Commissioner of at least thirty (30) classroom hours, or its equivalent, of instructions in a real estate school certified by the Commissioner." Section 6. Section 104207 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104207. Original Real Estate License Term. All original real estate licenses issued by the Commissioner shall be for a period of two (2) years and the holder thereof shall not become eligible for a renewal real estate license until one has successfully completed the Continuing Education Requirement outlined in 5104209 of this Act." Section 7. Section 104208 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows:

(c) Thereafter all broker's renewal shall be for a period of four (4) years with a continuing education requirement of sixteen (16) hours every two (2) years. Should the broker acquire more than the sixteen (16) hours during the two (2) year period, the excess hours may be credited to future renewal requirements." Section 8. Section 104209 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104209. Continuing Education Requirement for Salesperson Renewal. Any time prior to renewal of an original license the salesperson must satisfactorily furnish evidence of successful completion of an additional forty-five (45) classroom hours of study in 5104208 (a)(l) or (2). Thereafter, all salesperson renewals should be for a period of four (4) years with a continuing education requirement of twelve (12) hours every two (2) years. Should a salesperson acquire more than the minimum of twelve (12) hours during the two (2) year period, the excess hours may be crehted to future renewal requirements." Section 9. Section 104210 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104210. Exemption from Continuing Education Requirement. The Real Estate Commissioner shall grant an exemption to persons with an original real estate broker's or salespersons license to any person who has been issued a license for

I MINA' BENT. SlNGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) Regular Session & Date: :. 9 /:7f./ VOTING SHEET 6i11 NO. 4 Resolution No. Question: /.-c;f: : /&..A,. '....LA, f.. <,, I. i -T,- 0,, TOTAL CERTIFIED TRUE AND CORRECT: Clerk of the Legislature * 3 Passes = No vote EA = Excused Absence

MINA' BENTE SINGKO NA LIHESLATURAN GU- " TWENTY-FIFTH GUAM LEGISLATURE 155 Hesler Street, Guam 96910 April 30,1999 The Honorable Carl T.C. Gutierrez I Maga'lahen Gudhan Ufisinan I Maga'lahi Hagitiia, Guam 96910 Dear Maga'lahi Gutierrez: Transmitted herewith are Bill No. 151 (COR) and substitute Bill Nos. 4 (LS), 83 (COR), 159 (COR) and 180 (COR) which were passed by I Mina'Bente Singko Na Liheslafuran Guihan on April 28,1999. Sincerely, Enclosure (5) Senator and ~e~islatiwretar~ Executive D i 472-3409 Fax: 472-3510 Chief Fixd offica 4n-3491. pe~mel 47-520- 4n3499. &him 4 m. clerk of ~egk.1-472-3464

The Honorable Antonio R. Unpingco Speaker I Mina'Bente Singko na Liheslaturan Guhhan Twenty-Fifth Guam Legislature Guam Legislature Temporary Building 155 Hesler Street Haghtiia, Guam 96910 office of,f~ Speaker Dear Speaker Unpingco: Enclosed please find Substitute Bill No. 4 (LS), "AN ACT TO REPEAL AND REENACT 104203, 104204, 104205, 104206, 104207, 104208, 104209, 104210 AND 104211, AND ADD 8104211, ALL OF ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE BROKERS LICENSES", which I have vetoed. It is a good idea to foster increased professionalism by requiring continuing education for real estate brokers, however, this particular legislation cannot be implemented as passed, for the following reasons: 1. There is no transition period. This means that those currently licensed and working in the real estate business, either as a broker or a salesperson, cannot renew their licenses without lengthy continuing education requirements prior to the renewal. This would mean that many would be required to give up employment in the real estate market for a time. 2. The time of the license is lengthened from one year to two years, however, the price of the license remains the same. 3. The exemption from the requirement of!.king the classes for those who are over 70 years of age probably violates the Equal Protection Ricardo I. Bordallo Governor's Complex Post Office Box 2950, Agana, Guam 96932. (6711472-8931. Fax (6711477-GUAM

SpeakerlSB4lveto May, 1999 - Page 2 Clause. Also, the exemption from the requirement of taking the classes for those who have worked for 15 years may not be reasonably related to the reason for requiring the classes to begin with, and so may also be violative of Equal Protection. Very ' truly yours, I Maga'Lahen GuAhan Governor of Guam Attachment: copy attached for signed bill or overridden bill original attached for vetoed bill cc: The Honorable Joanne M. S. Brown Legislative Secretary

MINA'BENTE SINGKO NA LMESLATURAN GUAHAN 1999 (FIRST) Regular Session CERTIFICATION OF PASSAGE OF AN ACT TO I MAGA'LAHEN GUAHAN This is to certify that Substitute Bill No. 4 (LS), "AN ACT TO REPEAL AND REENACT 55104203, 104204, 104205, 104206 104207, 104208, 104209AND 104210, AND ADD 5104211, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING REAL ESTATE BROKERS LICENSES," was on the 28m day of April, 1999, duly and regularly passed. - Speaker Attested: Senator and Legislative Secretary This Act was received by IMaga'lahen Guahan at ofclock L.M. ~ssistant Staff Officer Magarlahi's Office

MINA'BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) Regular Session Bill No. 4 (LS) As substituted by the Committee on Housing, General Government Services and Foreign Affairs and as amended on the Floor. Introduced by: A. R. Unpingco F. B. Aguon, Jr. K. S. Moylan E. C. Bermudes A. C. Blaz J. M.S. Brown E. B. Calvo M. G. Camacho Mark Forbes L. F. Kasperbauer A.C. Lamorena, V C. A. Leon Guerrero V. C. Pangelinan J. C. Salas S. A. Sanchez, I1 AN ACT TO REPEAL AND REENACT 104203, 104204, 104205, 104206 104207, 104208, 104209 AND 104210, AND ADD 104211, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING REAL ESTATE BROKERS LICENSES. 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2 Section 1. Legislative Findings and Intent. I Liheslaturan Guihan 3 finds that the public interest is better served by the addition of a continuing

education real estate requirement for salespersons and brokers to enhance their skills and knowledge as professional Realtors. Furthermore, I Liheslaturan Guihan finds that based on the existing statute, no public interest is served by the requirement of renewal exams for real estate salespersons and brokers. However, the public and consumers' interest will be enhanced by requiring real estate professionals to be more knowledgeable in handling real estate transactions. Therefore, I Liheslaturan Guihan is of the opinion that the proposed continuing education requirement for brokers and salespersons should replace the antiquated exam renewal provision. The intent of I Liheslaturan Guihan of these changes in the statutes is to require salespersons and brokers: (a) to take additional real estate courses to improve their knowledge of the real estate practice rather than taking the same exam over again; (b) to ensure that salespersons and brokers meet minimum standards of proficiency and competence regarding real estate transactions; and (c) to regulate the scope of practice for real estate salespersons and brokers in the interest of consumer protection. Section 2. Section 104203 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104203. Condition Precedent to Issuance of Original Real Estate Broker's License. The Real Estate Commission shall not issue a real estate broker's license to any person who has not held an original real estate salesman's license for at least two (2) years prior to the date of his application for the broker's license, and during such time was not actively engaged in the business of real estate salesman, except,

if an applicant for a real estate broker's license having at least an equivalent of two (2) years general real estate experience and have satisfactorily completed a real estate course of instruction prescribed and approved by the commissioner, of at least ninety (90) classroom hours conducted by an accredited college or university or its equivalent of instruction in a real estate school or certified by the commissioner, or graduation from an accredited college or university with a degree in real estate, business, accounting, finance or any related field, files a written petition with the department setting forth his qualification and experience, and the Real Estate Commissioner approves, the applicant may be issued a real estate broker's license immediately upon passing the appropriate examination and satisfying the other requirements of this Article." Section 3. Section 104204 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104204. Application for Salesman's License. Application for license as a real estate salesman shall be made in writing to the Comn~issioner. The applications shall be signed by the applicant, and shall be accompanied by the real estate salesman's license fee; and by the recommendation of the broker, who is to be the applicant's employer, certifying that the applicant is honest, truthful and of good reputation and evidence of satisfactory completion of the basic real estate fundamental course prescribed and approved by the Commissioner, of at least thirty (30) classroom hours, or its equivalent."

Section 4. Section 104205 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104205. Requirement of Other Proof Before Authorizing License; Hearing. The Commissioner may require such other proof as the Commissioner may deem advisable concerning the honesty, truthfulness and good reputation of any applicant for a real estate license, or of the officers of any corporation, or of the members of any co-partnership making such application, before authorizing the issuance of a real estate license. For this purpose the Commissioner may call a hearing in accordance with the provisions of ths Division relating to hearings." Section 5. Section 104206 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed, and reenacted to read as follows: "Section 104206. Written Examination. In addition to the proof of honesty, truthfulness and good reputation required of any applicant for a real estate license, the Commissioner shall ascertain by written examination that the applicant, and in case of a co-partnership or corporation applicant, for a real estate broker's license that each officer, agent or member thereof through whom it proposes to act as a real estate licensee, has: (a) appropriate knowledge of the English language, including reading, writing, and spelling and of elementary arithmetic;

"Section 104208. (a) Broker's Renewal. Continuing Education Requirement for Anytime prior to renewal of an original broker's License, the broker must satisfactorily furnish the evidence of successful completion of an additional ninety (90) classroom hours of study selected among the following: (1) real estate practice; (2) real estate appraisal; (3) property management; (4) real estate finance; (5) legal aspect of real estate; (6) real estate office administration; (7) general accounting; (8) business law; (9) escrow; (10) real estate contracts, or any (11) real estate oriented study area. (b) Of the ninety (90) classroom hours, eighteen (18) classroom hours must be in the consumer protection area of study: (1) land use regulation; (2) consumer disclosure; (3) agency relationship; (4) fair practices; (5) environmental regulation and considerations; (6) taxation (real estate transaction); and (7) probate.

(c) Thereafter all broker's renewal shall be for a period of four (4) years with a continuing education requirement of sixteen (16) hours every two (2) years. Should the broker acquire more than the sixteen (16) hours during the two (2) year period, the excess hours may be credited to future renewal requirements." Section 8. Section 104209 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104209. Continuing Education Requirement for Salesperson Renewal. Any time prior to renewal of an original license the salesperson must satisfactorily furnish evidence of successful completion of an additional forty-five (45) classroom hours of study in I04208 (a)(l) or (2). Thereafter, all salesperson renewals should be for a period of four (4) years with a continuing education requirement of twelve (12) hours every two (2) years. Should a salesperson acquire more than the minimum of twelve (12) hours during the two (2) year period, the excess hours may be credited to future renewal requirements." Section 9. Section 104210 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104210. Exemption from Continuing Education Requirement. The Real Estate Commissioner shall grant an exemption to persons with an original real estate broker's or salespersons license to any person who has been issued a license for

fifteen (15) consecutive years, or has attained the age of seventy (70) years." Section 10. Section 104211 is hereby added to Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated to read as follows: "Section 104211. Substitution of Continuing Education Requirement. The Real Estate Commissioner may allow for substitution of the clock hour requirements, if the Commissioner makes a determination that the individual is otherwise and similarly quahfied by reason of completion of equivalent educational coursework in any accredited institution of higher learning or any degree granting accredited institution." Section 11. Severability. If any provision of this Law or its application to any person or circumstance is found to be invalid or contrary to law, such invalidity shall not affect other provisions or applications of this Law which can be given effect without the invalid provisions or application, and to this end the provisions of this Law are severable.

MINA'BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FlRST) Regular Session CERTIFICATION OF PASSAGE OF AN ACT TO I MAGA'LAHEN GUAHAN This is to certify that Substitute Bill No. 4 (LS), "AN ACT TO REPEAL AND REENACT 55104203, 104204, 104205, 104206 104207, 104208, 104209AND - 104210, AND ADD $104211, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING REAL -ESTATE BROKERS LICENSES," was on the 28" day of April, 1999, duly and regularly passed. Attested: 10 R.UNPINGC0 Speaker Senator and Legislative Secretary This Act was received by I Maga'lahen Guahan this 5- day of P(,T,1999, at 9- o'clock L.M. APPROVED: Assistant Staff Officer Magarlahi's Office CARL T. C. GUTIERREZ I Maga'lahen Guahan Date: Public Law No.

MINA~BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) Regular Session Bill No. 4 (LS) As substituted by the Committee on Housing, General Government Services and Foreign Affairs and as amended on the Floor. Introduced by: A. R. Unpingco F. B. Aguon, Jr. K. S. Movlan E. C. Bemudes A. C. Blaz J. M.S. Brown E. B. Calvo M. G. Camacho Mark Forbes L. F. Kasperbauer A.C. Lamorena, V C. A. Leon Guerrero V. C. Pangelinan J. C. Salas S. A. Sanchez, I1 AN ACT TO REPEAL AND REENACT 5104203, 104204, 104205, 104206 104207, 104208, 104209 AND 104210, AND ADD 5104211, ALL TO ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING REAL ESTATE BROKERS LICENSES. 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2 Section 1. Legislative Findings and Intent. I Liheslaturan Guihan 3 finds that the public interest is better served by the addition of a continuing

education real estate requirement for salespersons and brokers to enhance their skills and knowledge as professional Realtors. Furthermore, I Liheslaturan Guihan finds that based on the existing statute, no public interest is served by the requirement of renewal exams for real estate salespersons and brokers. However, the public and consumers' interest will be enhanced by requiring real estate professionals to be more knowledgeable in handling real estate transactions. Therefore, I Liheslaturan GuBhan is of the opinion that the proposed continuing education requirement for brokers and salespersons should replace the antiquated exam renewal provision. The intent of I Liheslaturan GuHhan of these changes in the statutes is to require salespersons and brokers: (a) to take additional real estate courses to improve their knowledge of the real estate practice rather than taking the same exam over again; (b) to ensure that salespersons and brokers meet minimum standards of proficiency and competence regarding real estate transactions; and (c) to regulate the scope of practice for real estate 16 salespersons and brokers in the interest of consumer protection. 17 Section 2. Section 104203 of Article 2, Chapter 104, Division 3 of Title 18 21 of the Guam Code Annotated is hereby repealed and reenacted to read as 19 follows: 20 "Section 104203. Condition Precedent to Issuance of Original 21 Real Estate Broker's License. The Real Estate Commission shall not 22 issue a real estate broker's license to any person who has not held an 23 original real estate salesman's license for at least two (2) years prior to 24 the date of his application for the broker's license, and during such time 25 was not actively engaged in the business of real estate salesman, except,

if an applicant for a real estate broker's license having at least an equivalent of two (2) years general real estate experience and have satisfactorily completed a real estate course of instruction prescribed and approved by the commissioner, of at least ninety (90) classroom hours conducted by an accredited college or university or its equivalent of instruction in a real estate school or certified by the commissioner, or graduation from an accredited college or university with a degree in real estate, business, accounting, finance or any related field, files a written petition with the department setting forth his qualification and experience, and the Real Estate Commissioner approves, the applicant may be issued a real estate broker's license immediately upon passing the appropriate examination and satisfying the other requirements of this Article." Section 3. Section 104204 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104204. Application for Salesman's License. Application for license as a real estate salesman shall be made in writing to the Commissioner. The applications shall be signed by the applicant, and shall be accompanied by the real estate salesman's license fee; and by the recommendation of the broker, who is to be the applicant's employer, certifying that the applicant is honest, truthful and of good reputation and evidence of satisfactory completion of the basic real estate fundamental course prescribed and approved by the Commissioner, of at least thirty (30) classroom hours, or its equivalent."

Section 4. Section 104205 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104205. Requirement of Other Proof Before Authorizing License; Hearing. The Commissioner may require such other proof as the Commissioner may deem advisable concerning the honesty, truthfulness and good reputation of any applicant for a real estate license, or of the officers of any corporation, or of the members of any co-partnership making such application, before authorizing the issuance of a real estate license. For this purpose the Commissioner may call a hearing in accordance with the provisions of this Division relating to hearings." Section 5. Section 104206 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed, and reenacted to read as follows: "Section 104206. Written Examination. In addition to the proof of honesty, truthfulness and good reputation required of any applicant for a real estate license, the Commissioner shall ascertain by written examination that the applicant, and in case of a co-partnership or corporation applicant, for a real estate broker's license that each officer, agent or member thereof through whom it proposes to act as a real estate licensee, has: (a) appropriate knowledge of the English language, including reading, writing, and spelling and of elementary arithmetic;

(b) a fair understanding of the rudimentary principles of real estate conveyancing, the general purposes and general legal effects of deeds, mortgages, land contracts of sale and leases, and of the elementary principles of land economics and appraisals; (c) a general and fair understanding of the obligations between principal and agent, of the principles of real estate practice and the canons of business ethics pertaining thereto, as well as the provisions of the Title 21 of the Guam Code Annotated, relating to real estate; and (d) have satisfactorily completed a real estate course prescribed and approved by the Commissioner of at least thirty (30) classroom hours, or its equivalent, of instructions in a real estate school certified by the Cornmissioner." Section 6. Section 104207 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104207. Original Real Estate License Term. All original real estate licenses issued by the Commissioner shall be for a period of two (2) years and the holder thereof shall not become eligible for a renewal real estate license until one has successfully completed the Continuing Education Requirement outlined in 5104209 of ths Act." Section 7. Section 104208 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows:

(c) Thereafter all broker's renewal shall be for a period of four (4) years with a continuing education requirement of sixteen (16) hours every two (2) years. Should the broker acquire more than the sixteen (16) hours during the two (2) year period, the excess hours may be credited to future renewal requirements." Section 8. Section 104209 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104209. Continuing Education Requirement for Salesperson Renewal. Any time prior to renewal of an original license the salesperson must satisfactorily furnish evidence of successful completion of an additional forty-five (45) classroom hours of study in 5104208 (a)(l) or (2). Thereafter, all salesperson renewals should be for a period of four (4) years with a continuing education requirement of twelve (12) hours every two (2) years. Should a salesperson acquire more than the minimum of twelve (12) hours during the two (2) year period, the excess hours may be credited to future renewal requirements." Section 9. Section 104210 of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated is hereby repealed and reenacted to read as follows: "Section 104210. Exemption from Continuing Education Requirement. The Real Estate Commissioner shall grant an exemption to persons with an original real estate broker's or 25 salespersons license to any person who has been issued a license for 7

Nteen (15) consecutive years, or has attained the age of seventy (70) years." Section 10. Section 104211 is hereby added to Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated to read as follows: "Section 104211. Substitution of Continuing Education Requirement. The Real Estate Commissioner may allow for substitution of the clock hour requirements, if the Commissioner makes a determination that the individual is otherwise and similarly qualified by reason of completion of equivalent educational coursework in any accredited institution of higher learning or any degree granting accredited institution." Section 11. Severability. If any provision of this Law or its application to any person or circumstance is found to be invalid or contrary to law, such invalidity shall not affect other provisior;ls or applications of this Law which can be given effect without the invalid provisions or application, and to this end the provisions of this Law are severable.

s Bill NO. Resolution No. Question: I MINA' BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) Regular Session Date: VOTING SHEET 4 (LJ) TOTAL - L CERTIFIED TRUE AND CORRECT: Clerk of the Legislature * 3 Passes = No vote EA = Excused Absence

MINA' BENTE SINGKO NA LIHESLATURAN GU- TWENTY-FIFTH GUAM LEGISLATURE 155 Hesler Street HagaMa, Guam 96910 Anvil 213 ( DATE I 1Q~q Memorandum To: Senator ANTONIO R. UNPINGCO From: Subject: Clerk of the Legislature Report on Bill No. 4 (LS) Pursuant to 57.04 of Rule VII of the 25' Standing Rules, transmitted herewith is a copy of the Committee Report on Bill No. 4 ir,s!, for which you are the prime sponsor. Should you have any questions or need further information, please call the undersigned at 472-3464/5. Attachment rirrre: Date: -- < I I - 1 ; -47

Senator Kaleo S. Moylan Chairperson, Committee on Housing, General Government Services and Foreign Affairs Mina'Bente Singko Na Liheslaturan Guikan Twenty-Fifth Guam Legislature April 23,1999 Honorable Antonio R. Unpingco Speaker Mina'Berite Singko Na Liheslaturan Guihan 155 Hesler Street Hagatfia, Guam 96910 VIA: Chairperson, Committee on Rules, Government Reform, Reorganization and Federal Affairs Dear Mr. Speaker: The Committee on Housing, General Government Services and Foreign Affairs, to which was referred Bill No. 4 (LS), "AN ACT TO REPEAL AND REENACT 104203, 104204, 104206 104207,104208,104209,104210 AND 104211 ALL OF ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE BROKERS LICENSE," has had the same under consideration and now wishes to report back the same with the recommendation to do pass as substituted. The Committee votes are as follows: 18 TO DO Pass D ~ oto t Pass Abstain Inactive File A copy of the Committee Report and other pertinent documents are attached for your immediate reference and information. Chairperson Enclosure: Tel. (671) 472-3342/3 Fax (671) 472-3440 Sinajana Shopping Mall Phase I1 Suite 16B 777 Route 4 Sinajana, Guam 96926 U.S.A.

Committee Housing, General Government Services and Foreign Affairs Vote Sheet on Substitute Bill No. 4 (LS) AN ACT TO REPEAL AND REENACT 55104203, 104204, 104206 104207, 104208, 104209 104210 AND 104211 ALL OF ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE BROKERS LICENSE. COMMITTEE TO NOT INACTIVE M-EhrIHER TOP*.. ABSTAIN FILE.,.c,, '..PP,. \. - - Anthony C. Blaz, Member Carlotta A. Leon Guerrero, Member /' - - - - Simon A. Sanchez, Member

Profile on Bill No. 4 (LS) Brief Title: Date Introduced: Main Sponsor(s): Committee Referral: Public Hearing: Official Title: Co-sponsors: Witnesses: Notices to Department(s): Recommendation: OVERVIEW: "Continuing Education for Real Estate Brokers License." January 4,1999. Senator A. R. Unpingco. January 11, 1999, from the Committee on Rules, Government Reform, Reorganization and Federal Affairs to the Committee on Housing, General Government Services and Federal Affairs. March 4,1999, at the Legislative Public Hearing Room. AN ACT TO REPEAL AND REENACT 104203, 104204, 104206 104207, 104208, 104209, 104210 AND 104211 ALL OF ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE BROKERS LICENSE. None as of March 3,1999. Anisia B. Terlaje and Christopher J. Felix, testifying in support of Bill No. 4 Adequate notice was given to the media and to the affected department(s) and/or agency(ies). To do pass as substituted by the Committee. To ensure that the public interest is best served, provisions governing the Real Estate Brokers License is strengthened by requiring that salespersons and brokers be required to enhance their skills and knowledge through a continuing education program. Enactment of Bill No. 4 would provide that the renewal exams should be replaced by a Continuing Education Requirement proposed herein.

Committee on Housing, General Government Services and Foreign Affairs Report On Substitute Bill No. 4 (LS) AN ACT TO REPEAL AND REENACT 104203, 104204, 104206 104207, 104208, 104209, 104210 AND 104211 ALL OF ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE BROKERS LICENSE. [Introduced by Senator A. R. Unpingco] PUBLIC HEARING: The Committee on Housing, General Government Services and Foreign Affairs, to which was referred Bill No. 4 (LS) "AN ACT TO REPEAL AND REENACT 104203, 104204, 104206 104207, 104208 AND 104209 AND TO REPEAL #I04210 AND 104211 ALL OF ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE BROKERS LICENSE," conducted a public hearing on Thursday, March 4, 1999, at the Legislative Public Hearing Room. MEMBERS PRESENT: Senator Kaleo S. Moylan, Chairperson of the Committee on Housing, General Government Services and Foreign Affairs convened the hearing promptly at 8:30 a.m. Committee members and other Senators present were: Carlotta Leon Guerrero, Vicente C. Pangelinan and Frank B. Aguon, Jr. TESTIMONY: Appearing before the Committee were Ms. Anisia B. Terlaje, Instructor, Center for Continuing Education Program, University of Guam and Christopher J. Felix, President of the Guam Board of Realtors [Exhibit "A"]. As an instructor of the Fundamentals of Real Estate, Ms. Terlaje testified that she sees no purpose for a renewal examination. According to her, instead of a second exam the public interest and the profession would benefit by instituting a continuing education program. She also suggested that the original license for both real estate salesperson and broker should be for a two (2) year period rather than one (1) year. Ms. Terlaje went on to say that all licensee should be required to take at least thirty (30) clock hours of training to be eligible to take the real estate exams. Next to present testimony was Mr. Christopher J. Felix, President of the Guam Board of Realtors. Mr. Felix testified that the Guam Board of Realtors supports the requirements being proposed in Bill No. 4. He went on to say that Brokers in Guam with specific designations, have to travel to the mainland to attend continuing education programs to retain their designation(s).

Both witnesses agreed that the continuing education courses can be taught at either the University of Guam or the Guam Community College. They also said that the courses to be offered would be accepted by the National Board. In concluding their testimony, and after citing similar programs currently in place in several states, both witnesses urged the Committee to expedite he passage of Bill No. 4. There being no further witnesses, the Chairperson of the Committee adjourned the hearing on Bill No. 4 and moved on to the next item of the hearing Agenda. A CLOSER LOOK: Bill No. 4 (LS) repeals and reenacts Sections 104203, 104204, 104206,104207,104208 and 104209 all of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated. These provisions range from the Condition Precedent to Issuance of Original Real Estate Broker's License; the Application for Salesman's License; to provisions regarding Written Examination; Original Real Estate License Term; Continuing Education Requirement for Broker Renewal, and Continuing Education Requirement for Salesperson Renewal. FINDINGS: The Committee finds that: 1. The Guam Board of Realtors through Mr. Christopher J. Felix, its president, supports passage and enactment of Bill 4 (LS) with modifications. 2. Bill No. 4 (LS) addresses and updates certain provisions of Guam law pertaining to real estate dealers in Guam. Furthermore, the public interest would be better served by the addition of a continuing education real estate requirement for salespersons and brokers to enhance their skills and knowledge as professional Realtors. 3. The current statute of requiring renewal of exams for real estate salespersons and brokers serves no public interest. The public and consumers' interest will be enhanced by requiring real estate professionals to be more knowledgeable in handling real estate transactions. 4. The Bill No. 4 (LS), with the suggested changes would require salespersons and brokers to: (a) take additional real estate courses to improve their knowledge of the real estate practice rather than to take basically the same exam over again; (b) ensure that salespersons and brokers meet minimum standard of proficiency and competence regarding real estate transactions; and (c) regulate the scope of practice for estate salespersons and brokers in the interest of consumer protection.

RECOMMENDATION: The Committee, having reviewed the testimonies presented at the public hearing, does hereby recommend to I Liheslnfz~m that "AN ACT TO REPEAL AND REENACT 104203, 104204,104206 104207,104208,104209,104210 AND 104211 ALL OF ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE BROKERS LICENSE," be passed as substituted.

MINA'BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) Regular Session Bill No. 4 (LS) As substituted by the Committee on Housing, General Government Services and Foreign Affairs. Introduced by: AN ACT TO REPEAL AND REENACT 104203, 104204, 104206 104207, 104208, 104209, 104210 AND 104211 ALL OF ARTICLE 2, CHAPTER 104, DIVISION 3 OF TITLE 21 OF THE GUAM CODE ANNOTATED, RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE BROKERS LICENSE. 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2 Section 1. Legislative Findings and Intent. I Liheslaturan Guihan 3 finds that the public interest is better served by the addition of a continuing 4 education real estate requirement for salespersons and brokers to enhance 5 their skills and knowledge as professional Realtors. Furthermore, I 6 Liheslaturan Guihan finds that based on the existing statute, no public interest 7 is served by the requirement of renewal exams for real estate salespersons and 8 brokers. However, the public and consumers' interest will be enhanced by 9 requiring real estate professionals to be more knowledgeable in handling real 10 estate transactions. Therefore, I Liheslaturan Guilzan is of the opinion that the

proposed continuing education requirement for broker and salesperson should replace the antiquated exam renewal provision. The intent of 1 Liheslaturan Gutihan of these changes in the statutes is to require salespersons and brokers: (a) to take additional real estate courses to improve their knowledge of the real estate practice rather than taking the same exam over again; @) to ensure that salespersons and brokers meet minimum standard of proficiency and competence regarding real estate transactions; and (c) to regulate the scope of practice for real estate salespersons and brokers in the interest of consumer protection. Section 2. Repeal and Reenact. Sections 104203, 104204, 104206, 104207, 104208, 104209, 104210 and 104211 all of Article 2, Chapter 104, Division 3 of Title 21 of the Guam Code Annotated are hereby yepealed and reenacted to read: "Section 104203. Condition Precedent to Issuance of Original Real Estate Broker's License. The Real Estate Commission shall not issue a real estate broker's license to any person who has not held an original real estate salesman's license for at least two (2) years prior to the date of his application for the broker's license, and during such time was not actively engaged in the business of real estate salesman, except, if an applicant for a real estate broker's license having at least an equivalent of two (2) years general real estate experience and have satisfactorily completed a real estate course of instruction prescribed and approved by the commissioner, of at least ninety (90) classroom hours conducted by an accredited college or university or its equivalent of instruction in a real estate school or certified by the commissioner, or 2

I! Iil graduation from an accredited college or university with a degree in real estate, business, accounting, finance, or any related field, files a written petition with the, department setting forth his qualification and experience, and the, Real Estate Cornn~issioner approves, he may be issued a real estatt! lxoker's license imlnttliately upon passing the appropriate examination and satisfying the other requirements of this Article. Section 104204. Application for Salesman's License. Application tor license as a real estate salesman shall be made in writing to the Commissioner. The applicaiions shall be signed by the applicant, and shall be accompanied bv the red estate salesman's license fee; and by the rccolnmendation of the hroker, who is to be his employer, certifying that the applicant is honest, truthful and of good reputation and evidence of satisfactory completion of the basic real estate fundarnent;ll course prescribed and approved by the Commissioner, of at least thirty (30) classroom hours, or its equivalent. Section 104205. Requirement of other proof before authorizing license; hearing. The Comnlissioner may require such other proof as he may deem advisable concerning the honesty, truthfulness aiid goocl reputation of any applicant for a reill estate license, or of the officers of anv col.poratiori, or of the meii~hers of any co-partnerslliv making such application, before authorizin!: the issuance of a real estate license. For this purpose the Commissioner may call a hearing in accordance wit11 the provisions of this Division relating to hearings.

Section 104206. Written Examination. In addition to the proof of honesty, truthfulness and good reputation required of any applicant for a estate license, the Comniissioner shall ascertain by written examination that the applicant, and in case of a co-partnersl~ip or corporation applicant, for a real estate i>roker1s license that each officer, agent or me~nber thereof through whom it proposes to act as a real estate licensee, has: (a) Appropriate knowledge of the English language, including reading, writing, anci spelling and of elen~ent~~sy arithmetic. (b) A fair understanding of the rudimentary principles of red estate conveyancing, the general purposes dnd general legal effects of deeds, mortgages, land contracts of sale and leases, and of the elementary principles of land economics and appraisals. (c) A genes;ll and fair ul~derstanding of the obligations between principal and agent. of the principles of rcwl estate practice and tlic canons of business c,diics pertaining thereto, '1.; well as the provisions of the Title 21 of the Guam Code Annotated, rei'lting to real estate. (d) Have ~~~tisfactorily completed a real estate course prescribed and approved by tile Com~nissioner of at least thirty (30) classroom hours, or its equivaicnt, of instructions in a real estate school certified bv the Commissioner. Section 104207. Original Real Estate License Term. All original real estate licenses issued by the Coll~missioner shall be for a period of iwo (2) J'edrs and the holder thereof shall not become eligible

for a renewal real estate license until he has s~~ccessfully completed thv Continuing Education Requirement outlined il: 5'104209 of this Act. Section 104208. (a) Continuing Education Requirement for Broker's Renewal. Anytime prior to renewal of an original broker's licc~ise, the broker must satisfactoril\r furnish the evidence of successful completion of an additional ninc,t\, (90) classroom hours of studv selecteii amolig the following: (b) (I) Rc,al Estate Practice, (2) Real Estate Appraisal, (3) I'ropertv Management, (4) Re'11 Estate Finance, (5) ],?gal Aspect of Real Estate, (6) Re,~l Estate Office Adn~inists~~tion, (7) Gcnerai Accounting, (8) Business Law, (9) Escrow, ('I 0) Rcal Estate Contracts, or an\. ('1'1) Red Estate Oriented Studv Area. Of the ninetv (90) classroom hours, eighteen (18) classroom hours must be in the colisumer protection are,! of study: (1) L,lnci Use Regulation, (2) Consuiner DiscLosure, (3).Agency Relationship, (4) 14air Practices, (5) II1ivirontnel1tal Regulation aiid Considerations, r; 2

(c) (6) Taxation (Rcal Estate Trans;:~ction), and (7) Probate. Thereafter all broker's renewal shall be for a period of four (4) years with a continuing education requirement of sixteen (16) hours every two (2) year.;. Sliould the broker acquire more than the sixteen (16) l~ours during the two (2). year. pc!rioci, the excess hours may lie credited to future ri>newal requirenie~~ts. Section 104209. Continuing Education Requirement for Salesperson Renewal. Any time prior to renewal of an original license the salesperson must satisfactorilv furnish evidence of successful completion of an itdditional forty-five (45) classroom hours of study in s104208 (a)(l) or (2). Thereafter, all salesperson renewals should be for a period of four (4) wars with a continuin? education requirement of twelve (12) hours every two (2) years. Sliould a salesperson acquire inore than the niininium of twelve 12 hours during the two (2) ycm period, the exccss liours mav be cri~iited to future renewal requirements. Section 104210. Exemption from Continuing Education Requirement. The Real Estate Commissioner shall grant an exemption to persons with an original real estate broker's or salespersorls license to any person who has been issued a license for fifteen (15) consecutive vears or has attained the age of seventy (70) vears. Section 104211. Substitution of Continuing Education Requirement. The Rcal Estate Com~iiissioncr may allow tor 6

substitution of the clock hour requirements, i i the Commissioner makes a determination that the individual is other\vise and similarly qualified by reason of complrtiol~ of equivalent educational coursework in an!; accredited institution of higher learning or any degree granting accredited institution." Section3. Severability. If any provision of this Law or its application to any person or circumstance is foulld to be il~valicl or contrary to law, such il~validitv shall not affect other provisions or applications of this Law which can be given c,ffect without the invalici provisions or applicatioil, a~id to this end the provisions of this Law are seve~.al>le.

MINA' B ITE SINGKO NA LIHESi TURAN G U ~ Kurmtean Areklamento. Refotman Gubemamento Siha. Inemon di Nuebu. yan Asunton F ibt Senator Mark Forbes, Ch- JAN 1 11999 MEMORANDUM TO: Chairman,/' Committee on Housing, General Government Services and Foreign Affairs FROM: Chairman Government Reform, Reorganization SUBJECT: Principal Referral - Bill No. 4 The above bill is referred to your Committee as the Principal Committee. In accordance with Section 6.04.05. of the Standing Rules, your Committee "shall be the Committee to perform the public hearing and have the authority to amend or substitute the bill, as well as report the bill out to the Body." It is recommended that you schedule a public hearing at your earliest con\.enience. Thank you for your attention to this matter Attachment MARK FORBES 155 Hesler Street Hagitiia Guam 96910 Telenhone. 671472-3407!408 512 Facqimile: 671477-5036, Ernall : senforhes~kuentos.mram.net

MINA' BENTE SINGKO NA LIHESLATURAN GUAHAN 1999 (FIRST) REGULAR SESSION Bill No. 3 (. l- 5) Introduced by: A.R. Unpingco b "AN ACT TO REPEAL AND REENACT 55104203. 104204, 104206, 104207, 104208 AND 104209; REPEAL AND REENACT 5104210 AND 104211 OF ARTICLE 2 OF TITLE 21 OF THE GUAM CODE ANNOTATED (GCA) RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE (DEALERS) LAW." BE IT ENACTED BY THE PEOPLE OF GUAM: Section 1. Legislative Findings and Intent. I Liheslaturan Guahan finds that the public interest is better served by the addition of a continuing education real estate requirement for salespersons and brokers to enhance their skills and knowledge as professional Realtors I Liheslaturan Guahan further finds that no public interest is served by the requirement of renewal exams for real estate salespersons and brokers. However, the public and consumers' interest will be enhanced by requiring real estate professionals to be more knowledgeable in handling real estate transactions. Therefore, the renewal exams should be replaced by a Continuing Education Requirement proposed herein.

1 1 The intent of I Liheslaturan Guahan of these changes in the statutes 2 is to require salespersons and brokers: 3 (a) to take additional real estate courses to improve their knowledge of the real estate practice rather than to take basically the same exam over again; and (b) to ensure that salespersons and brokers meet minimum standard of proficiencv and competence regarding real estate transactions; and (c) to regulate the scope of practice,for estate salespersons and brokers in the interest of consumer protechon. Section 2. 104203, 104204, 104206, 104207, 104208 and 104209 of Article 2, Title 21, Guam Code Annotated (GCA) are repealed and reenacted to read: " 104203. Condition precedent to issuance of original real estate brokeis license. The Real Estate Commission shall not issue a real estate broker's license to any person who has not held an orignal real estate salesman's license for at least two (2) years prior to the date of hs application for the broker's license, and during such time was not actively engaged in the business of real estate salesman, except, if an applicant for a real estate brokeis license having at least an equivalent of two (2) years

[ 1 general real estate experience and have satisfactorily completed a real estate course of instruction prescribed and approved by the commissioner, of at least 90 classroom hours conducted by an accredited college or university or its equivalent of instruction in a real estate school or certified by the commissioner, or graduation from an accredited college or university with a degree in real estate, business, accounting, finance, or any related field files a written petition with the department setting forth hs qualification and experience, and the Real Estate Commissioner approves, he may be issued a real estate brokefs license immediately upon passing the appropriate examination and satisfying the other requirements of ths Article. $104204. Application for salesman's license. Application for license as a real estate salesman shall be made in writing to the Commissioner. The applications shall be signed by the applicant, and shall be accompanied by the real estate salesman's license fee; recommendation of the broker, who is to be hs employer, certifying that the applicant is honest, truthful and of good reputation; and evidence of satisfactory completion of the basic real estate fundamental course prescribed and approved by the 19 Commissioner, of at least thirty (30) classroom hours (or its equivalent).

1 5104206. Written examination. In addition to the proof of honesty, truthfulness and good reputation required of any applicant for a real estate license, the Commissioner shall ascertain by written examination that the applicant, and in case of a co-~artnersh~ or corporation applicant, for a real estate brokeis license that each officer, agent or member thereof through rvhom it proposes to act as a real estate licensee, has: (a) appropriate knowledge of the English language, including reading, writing, and spelling and of elementary arithmetic. (b) a fair understanding of the rudimentary prinaples of real estate conveying, the general purposes and general legal effects of deeds, mortgages, land contracts of sale and leases, and of the elementar). prinaples of land economics and appraisals. (c) a general and fair understanding of the obligations between principal and agent. of the prinaples of real estate practice and the canons of business ethcs pertaining thereto, as well as the provisions of the Title, Guam Code Annotated, relating to real estate. (d) have satisfactorily completed a real estate course prescribed and approved by the Commissioner of at least thrty (30) classroom hours

1 (or its equivalent) of instructions in a real estate school certified @ the 2 Commissioner 3 104207. Original Real estate license term. AU original real estate. 4 licenses issued by the Commissioner shall be for a period of two (2) years 5 and the holder thereof shall not become eligble for a renewal real estate 6 license until he has successfully completed the Continuing Education 7 Requirement outlined in 104209. 8 104208. (a) Continuing Education Requirement for Broker 9 Renewal. Anpme prior to renewal, the broker must satisfactorily furnish 10 the evidence of successful completion of an additional ninety (90) 11 classroom hours of study selected among the following: 12 (1) Real Estate Practice. (2) Real Estate Appraisal. (3) Property Management. (4) Real Estate Finance. (5) Legal Aspect of Real Estate. 17 (6) Real Estate Office Administration. (7) General Accounting. (8) Business Law. 20 (9) Escrow.

(10) Real Estate Contracts. (11) Or any Real Estate Onented Study Area. @) Of the nineb. (90) classroom hours, eighteen (18) classroom hours must be in the consumer protehon area of study: (1) Land Use Regulation. (2) Consumer Disclosure. (3) Agency Relationshp. (4) Fair Practices. (5) Environmental Regulation and Considerations. (6) Taxation (Real Estate Transaction). (7) Probate. 5104209. Continuing Education Requirement for Salesperson Reilewal. Any time prior to renewal, the salesperson must satisfactorily furrush evidence of successful completion of an additional forty-five (45) ciassroom hours of study in 3104208 (1) or (2)." Section 3. Fj104210 and 5104211 are hereby repealed.

1,2ISI,l 5. TERLAJE Tebtimony or1 Bill $4 A ttrl: Se~rrtor, Ico,2lo1,l~rn, Cltcrirt~la~ Committ and Fore i>n llousing. General ( ~ernment Services I,-Iffaits

I aln here before yo1 and not impose a b~ step in updating the real cs I support the o\eraii suggestions for your cons~d n \upp~>r!er of Hill 4, B~ll 4 L\ :n to the profession. In fael. I : dcaizr.5 la\\ in Ciuarn. s t i l i l l 4. lio\xei.er. I t1011 --- -nhance the laud th~s b~ll as the first uld later offer a few As an instructor of! I~'~111da1ricntals of Real ii:.j!@ c be offered by the Center for Continuini! I:ducat~on_a various licensing pro\;tsion Most of my studerit 1Jnfortunately. I have had i exam. I have even had ~ ZT, because they had to close t' comniunit!, and no public^ businesses because the! Ihi eli~ninatcd. Instead of a re education requirement In roday's cconom! It is lot easier to take a clay exarn. I realired that p& given for I~fi.. Rather, it is must be renewed. Outrcitcli i'rocra~n at ljo<;. I a ~rollcd so that the? could he lic,rlil students in the class becau: \\ho i'ailed their broker.s retlg ollice. 'l'l?is exatnplc is 11-.rest --- ~- IS ser~ed b!, ha\ ing these the real estate renewal ei;tm \.a1 c\-arii. I agree \\it11 R~ll!~4. c sliould hi. encouraging busin sharpen olle's skillc that1 to \\ )me othcr prokssional license ~cd 1i)r a \pec~fied number of! )FTEN asked about the.ed agentsibrokers. ley failed their Renewal.I exam come to class for the business ividuals close their :h I think should be ch mandates a continuing expansions. not closures. y about passing another real estate license is not -s and at the expiration it

Under the current (;uaiii st; hotii license\ I Salcs[lcrson & okcr) are requ~red to take a second e wn kir rent :I. '['lii.!11~~+ai liccr~se IS ~sbued I \r and then 3 months prior to the espiratlon ui'lli esalll. Personall!.. i think : Rather. 1 agree liill -I dele1 Education requirement. Man\; stdle lcg~slat Education as a ~<conditic, The cluallty and tin I I I the Ilccnscc is pe i I h i arc ~rcili~iring l~ccrisccs to 1 rclic\\;il ot'thcir ire31 estzite lic! of the education \ arlcb. Som ttcd to take the second cr\es no publ~c Interest \\ ~th a Continuing rive Continuing ;e. ates require college credits \\hlle. others ma! L rccjt~~ri. a I ligli School d1pl~111 For example, Colorado recluircs that an applicant major course of stud! in r' ho~irs in real estate suli.jec In Colorado. In or( a College degree \\ it11 a 11 study consisting o1'& cla Yr (511 In West Virginia. ;I ialespcr-<oti-s lice~isc {nust hi :siatc or. co~ii{ilcte a course 01 to hi. ilualitied fbt a l2roke1-is I r coi~i-sc olsludy In l<ealestat IOLII~ 111 real estate sul'jects I(' 1 Ill-\ (11' Instrucllon are nccc a College degree with a d! consisting of =class I\e an appl~cant must have el5e co~nplete a course of Re\ Stat 6 12-61-103(4) ry to qualify an applicant for Salesperson's license i I80 c1c1c.l hours to qilalit) an ~licant for a broker's l~cense [WVa Code $47 In Tezas. an appl' semester hours of post-si -4.; i (-i)l it t'i~r a \alcqier\on's l~cc~i\i' In ~dor! cdiiczlt~on. at least 6 of \\ ha\ e completed 12 h must be in real estate.

The purpose of recp purpose of protecting the pt of skills and kno~vledge by Therefore, Continui to you (Legislators) in assu public. I am aware that SOIT relish a continuing educatic include an ~- EM^%%...-- a I recommend that tt who have been licensees fo requirement. For example. years i~nrnediately prior to exempt.(n.y. Real Prop. L; Another esample oi ~g a proper professional edtica~ IC interest. as \\ell as, to assure...licensee. ( See. Io\m Code Education requirc~ncnts are bu 4 the colnpetency necessary to urrent cne~nbcrs ofo~ir lc~cal ri' eclt~irement. I ~vould. therek~rt ~ ~ a SIJBS7lTUTION ~ ~~~~ pro\.ision uemptlon provision incli~di. a 1 specified pcriod of time and oi Ne\\ York. a pcrson \\ho is lic enactment of the continuin$! i.c $441 i;)(a)(mckinne?) euempticrn statute is Calik~rni, IS important for the '.continued maintenance i 8 258 A.21(2) )other technique available tect the interest of the,state professionals do not :cornmend that Bill 4 certain licmsecs. idfather clause for those :el certain age 2d fbr 15 successive at requirement is n Cal~forn~a. a perwn who has been a licensee in )d slanding for 30 continuous! s 1s 70 ears of age or over is exempt. [CalBus ['rot'. Code 10170.8 (West)] In l~.ouisiana. a pers Jan. I, 1981 is exempt. [La In othcr states (Orei \vho has been licensed Sol- 10yt :.Stat. Ann.s 37: 1437 (c)()(& &: North Dakota? the licerls~nr. or \vas licensed prior to!1 ency ]nay exempt licensees \\ho are not engai in p~ihlic practice due to reaso or other good cause. [E.. I. Cent. Code5-I;-23-08?: OK ~fh-; military service :\.Stat.$696.174(5)]

I. recomlncnd that! Ic~~\Iators I consider adopting : of the abo\e lnodels as part of the Guam exemptlot In summary. I think ~~\~lslolls t<l 131114. 11 the 2~ hours itir (:o~itinu~~ix I& as provided by $ 104700 for salcsixrson and L lo\\e\cr. I reconilr : q(i -- 111-s Sor &(!xxs ($l042ox I I that th~u rtcl~iireincnt siiolild I lot excessive. im for those applying for their first renc\\a_l onl! ielie\e tlic Intent oftlit hill is 1 ~bstitute the exam for a Continuinc l!ducatioy.)ill rc111t!111 fhercti~re. 1 recolnl specie that the 45 and 90 I Additionall!. the t~ ~d that the trio pro\is~ons $104 rs reil~~~rcti~ent will be for the 1 >ro\ i\iolli \Iiould include an ac i arid (9) be modified to renewals only. lonal sentence at the end for all other r enea Scc gi.? of t!ic hill.-'lhel-caiier a roker's renexval should be for a period of4 ycars \\~tl \,ears. Shoilld!he broker i :ontliiuilig cducatioli reclulrelii 111-c rnol-e than the rnin~lnuln si of 16 hours every two,n hours during the two hear period. the excess ho~ inn! Ilc crcd~tcd to f ~~t~~re relic7 reiluirements.,~ - - ~ Go. to m c 5 "!211? tilnc prlor 10 page 6 "An! time prlor to lzsperson must sat~sfactorily furnish elidi classroom hours of S~LI~! sl~ould be fix a period 01'- dditional forty-five (45) ialespcrson) renewals ~quirement of twelve hours every two J cars. Should a salespcrs LICIILIII.~ iiiorc tliari the iiiini~rii~i f 12 hours during the two year period. the esccss ho ma! l>r credited to tlt~~re r-cnc requlranents "

1 think that t e rillnor c!ianges and aildit~ons uld sene the public interest as well as provide t iecesrar! ~uidclines (hi& and uwradinr! the Guam real estate professional star! ds -~ As for the Suhstitut. -~- i)ro\~siod - ~~ a modificat& of th evised Code of Washin@on (RCW 18.8 0 is a good niodel "The RE. Coininis. lei may alio\\ for substitution he clock-hour requirements ($3 101108:l 109) if ths iommissiorler inake determination that the individual is other\vise anc nilarly qualified by reason of c pletion of equivalent educational course\vork in institution." I offer this pr. ins~itution of higher educatio.;ion ('or vcliir considzration. -any degree-granting In closing, I think t some sections ofthe Guam lii Estate Dealers (Law) are outdated. too restrict~ve ar igfzr_ I \velcon~e Hill 1 a e step in I&&% Gudn ieal Estate statutes and I urge you to t s~der 171> rcco1n11iendations in sing this bill. Thank You for!he portunit!. to hear my connnent is morning.

February 24. 1999 Sen. Kaleo S. Moylan, Chairman Committee on Housing, General (iovernment Services and Foreign Affairs Mina'Bente Singko na Liheslaturan Guahan 154 Hesler Place Hagatna, Guam 969 10 Re: Bill No. 4 Dear Sen. Moylan, As an instructor of the Fundamentals of Real Estate course offered by the Center for Continuing Education and Outreach program at the University of Guam, I am very interested in Bill No. 4, amending the real estate dealen law. I would like to offer a modification to Bill No. 4, which would enhance the public interest and not impose a burden to the profession. ' First. I see no purpose for the renewal examination. No other profession requires this..a\ long as individuals renew their license, they are not required to take another exam. Instead of,i second examination. the public interest and the profession would benefit by substituting the second examination for a continuing education requirement. I, therefore, am in favor of deleting the second exazunation and replacing it w~th a continuing education requircrn~nt ($101204). Secondly, the original license for both the real estate salesperson and broker should be for :; two (2) year period rather than one (1) year. All original licensee should be required to take at leas1 thirty (30) clock hours of trainlug to be eligible to take the real estate examination. Third, I think that the training requirement of fortyfive (45) hours ($101209) for salesperson, and ninety (90) hours ($104208) for brokers. is not excessive. However, th~i requirement should be limited for those applying for the - first renewal. Real estate is a complex field and real estate professionals encounter numerous issues ranglug irom simple escrow and accountiri. questions to complicated legal issues. The recommended 45-90 hours of classroom training \~111 assist new agents and brokers in dealing with the complexity of The business. The purpose of thi. requirement is to enhance the agentslbrokers knowledge such as duty of disclosure. fiduciary dut~ck and other agency laws; thereby, protecting public interest. These chanses will give real estate professionals the necessary tools to handle various real estate transactions. Fourth, the second renewal and thereafter should be for a period of four (1) yeais with.; continuing education requirement of twelve to sixteen (1216) hours for salesperson ($ 104209), ani sixteen to twenty (16-20) hours for brokers ($104203)..\ddit~onally, should either licensee take more than the minimum hours required for renewal, the licenser should be 3llowed to carryover tiic hours for future renewal requirements. Finally, I think that the real estate dealers law in Guam 1s outdated. and I urge you and the committee to act on this Bill as soon as possible. Thank you for the opportunity to comment on Rill NO. 4 and if I could be of any assistance to you and your committee, please do not hesitate to call rnc at 565-7036. Sincerely, cc: Speaker.\ntonio R. Unpineco

MINA'BENTE SINGKO NA LIHESLATURAN GUAHAN COMMITTEE ON HOUSING, GENERAL GOVERNMENT SERVICES AND FOREIGN AFFAIRS SENATOR KALE0 S. MOYLAN CHAIRMAN PUBLIC HEARING 8130 A.M., THURSDAY, MARCH 4 1999 GUAM LEGiqCATURE PUBLlC HEARING ROOM 1. Call to Order AGENDA 11. Announcement and Introduction of Members 111. *GOVERNOR'S APPOINTMENT OF MR. FREDERIC A. LEON GUERRERO TO SERVE AS MEMBER OF THE BOARD OF EQUALIZATION EXPIRING FEBRUARY 16,2003. t 'BILL NO. 4 -AN ACT TO REPEAL AND REENACT 95 104203,704204, 104206,104207,104208, AND 104209; REPEAL AXD REENACT I04210 AND 9104211 OF ARTICLE 2 OF TITLE 27 OF THE GUAM CODE ANNOTATED (GCA) RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE (DEALERS) LAW. (Sponsored by R. Unpingco) *BILL NO. 8 -AN ACT RELATIVE TO AUTHORIZING THE GUAM HOUSING CORPORATION TO EXTEND THE MAXIMUM AMORTIZATION LOAN PERIOD FOR FIRST-TIME HOMEOWNERS AND LOWmODERATE INCOME FAMILIES, TO ALLOW FOR MORE FEASIBLE PAYMENT ARRANGEMENTS AND TO INCREASE QUALIFICATION OPPORTUNITIES FOR FINANCING NECESSARY FOR THE CONSTRUCTION OR PURCHASE OF THEIR HOMES. (Sponsored by F. 8. Aguon, Jr.) *BILL NO. 36 - AN ACT TO REPEAL AND REENACT SECTION 4104(a) OF TITLE 4, GUAM CODE ANNOTATED (GCA) RELATIVE TO PREFERENCES FOR CRIMINAL JUSTICE ACADEMY GRADUATES. (Sponsored by A. C. Blar) IV. REMARKS V. ADJOURNMENT

MINA'BENTE SINGKO NA LIHESLATURAN G U ~ N Committee on Housing, General Government Services and Foreign Affairs Markup Meeting 4:00 p.m., Wednesday, March 10,1999 A-'G E N D A L Call to Order. IL Executive Appointment and Bill No. 4: (a) Mr. Frederic k Leon Guerrero to serve as a member of the Board of Equalization, for a term of four (4) years to expire on February 16,2003. @) Bill No. 4 (1s) AN ACT TO REPEAL AND REENACT ~104203,104204,104206 104207,104208 AND 104209 AND TO REPEAL 104210 AND 104211 ALL OF ARTICLE 2 CHAR'ER 104, DIVISION 3 OF mle 21 OF THE GUAM CODE ANNOTATED, RELATIVE To LPDATING AND IMPROVING THE. REAL ESTATlj BROKERS LICENSE. (c) Recommendation: (i) Appointment of Frederic A. Leon Guerrero to do confirm, or not to confirm. EL (ii) Bill No. 4 (LS), to amend or substitute; and tobo pass, or not to pass. Briefing on Departmental Budgets: IV. Remarks. Deparfment of Administration Department of Revenue and Taxation Bvau of Planning Ciyil Service Commission Guam Finance Commission and Bureau of Information Technology Office of the Public Auditor Tel. (671) 472-3342/3 Fax (671) 472-3440

1 lil Senator Kaleo S. Moylan Chairperson, ~ommitt(l on Housing, General Government Services and Foreign Affairs MiiiaJBente Singko Na Lii~eslatllran Gvahall Twenty-Fith Guam Legislature. February 24,1999 The Honorable Carl T. C. Gutierrez Maga'lahen Guahan R 1. Bordallo Governor's Complex Hagatna, GU 96910 Dear Governor Gutierrez This is to inform you that the Committee on Housing, General Government Services and Foreign AflG?in will be conducting a public hearing on Thwsday, March 4, 1999, at 8:30 a.m. in the Guam Legislature Public Hearing Room on the following: *Bill No. 4CLS)-AN ACTTO REPEAL ANn PEENACT 104203, 104201,104206,104207,104208, AND 104209; REPEAL AND REENACT lo4210 AND 104211 ALL or ARTICLE 2 OFTITLE 21 OF THE GUAM CODE ANNOTATED RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE (DEALERS) LAW. *Bill No. 8CLSbAN ACT RELATIVE TO AUTHORIZMG THE GUAM HOUSING CORPORATION TO UCIEND THE MAXbfLN AMORTIZATION LOAN PWOD FOR FIRST-TIME HOMEOWNERS AND LOWiMODERATE INCOME FAMILIES, TO ALLOW FOR MORE FEASIBLE PAYMENT ARRANGl%ENTS AND TO INCREASE QUALIFICATION OPPORTUNITIES FOR FINANCING NECESSARY FOR THE CONSTRUCnON OR PURCHASE OF THEIR HOMES. *Bill No.36CS)-AN ACTTO REPEAL AND REENACT g4101(a) OFTlTLE 4, GUAM CODE ANNOTATED (GCA) RELATIVE TO PREFERENCES FOR CRIMINAL JUSTICE ACADEMY GRADUATES. *Confirmation Hearinc-GOVERNOR'S APPOMR~~ENT OF MR FREDERIC A. LEON G-0 TO SERVE AS MEMBER OF THE BOARD OF EQUALIZATION TO EXPIRE ON FEBRUARY 16, 2003. Your presence at this meeting is greatly appreciated. nunk you for your attention to this matter. rn Sincerely yours, KALE0 S. MOYLAN Senator Tel. (67I) 472-3342/3 Fax 1671) 472-3510 Sinajana Shopping Mall Phase I1 Suite 16B. T/;' Route 4 Sinajana, Guam 96926 U.5.A.

1 lil Senator Kaleo S. Moylan Chairperson, Committt" In Housing, General Government Services and Foreign Affairs Mina'Bente Singko Na Lil~eslatumn G~ialtarl Twenty-Fifth Guam Legislature -. February 24,1999 Mr. Joseph Duenas Director Department of Revenue and Taxation P. 0. Box 23607 GMF, GU 96921 Dear Mr. Duenas: This is to inform you that the Committee on Hoking, General Government Services and Foreign Affairs will be conducting a public hearing on Thursday,,March 4, 1999, at 8:30 a.m in the Guam Legislature Public Hearing Room on the following: *Bill No. 4CStAN ACT TO RTEAL AND REENACT $$1042Ci, 104201,104206,104207, lojy8, AND 104209; REPEAL AND REENACT 5104210 AND 10121 1 ALL OF ARTICLE 2 OFTlTLE 21 OF THE GUAM CODE ANNOTATED RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE (DEALERS) LAW. *Bill No. 8(LS)-AN ACT RELATIVE TO AUTHORIZmG THE GUAM HOUSING CORPORATION TO EXEND THE MAXIMUM AMORTIZATION LOAN PERIOD FOR FIRST-TIME HOMEOWNERS AND LOWNODERATE INCOME FAMILIES, TO ALLOW FOR MORE FEASIBLE PAYMENT ARRANGEMEMS AND TO INCREASE QUALIFICATION OPPORTUNITIES FOR FINANCING NECESSARY FOR THE CONSTRUCTION OR PURCHASE OF THEIR HOMES. *Bill No.36CShU-4 ACTTO REPEAL AND REMACT $4101(a) OFTlTLE 4, GUAM CODE ANNOTATED (GCA) RELATIVE TO PREFERENCES FOR CRIMINAL JUSTICE ACADEMY GRADUATES. *Confirmation Hearine-GOVERNOR'S APPOINTMENT OF MR FREDERIC A. LEON GUERRERO TO SERVE AS MEMBER OF THE BOARD OF EQUALIZATION TO EXPIRE ON FEBRUARY 16, 2003. Your presence at this meeting is greatly appreciated. Thank you for your attention to this mitter. Sincerely yours, Senator Tel. (671) 472-3342/3. Fax (671) 472-3440 Sinajana Shopping Mail Phase I1 a Suite 16B 777 Route 4 Sinajana, Guam 96926 U.S.-A.

1 lil Senator KaIeo S. Moylan n Housing, General Government Services and Foreign Affairs Mina'Bente Singko Nu Lilleslaturan G~rahnl~ Twenty-Fith Guam Legislature Chairperson, omm mitt dl. February 24,1999 Mr. Daniel L. Webb Guam Chamber of Commerce P. 0. Box 283 Hagam GU 96932 Dear Mr. Webb: This is to inform you that the Committee on Housing, General Government Senices and Foreign Affairs will be conducting a public hearing on Thunda~, March 4, 1999, at 8:30 a.m. in the Guam Legislatun Public Hearing Room on the following: *Bill No. 4CS)-Ah' A ato REPEAL QM) REENACT 101203, 104204,101206, lf4207,101208, AND 104209; REPEAL AND REENAn I04210 AND 10421 1 ALL OF ARTICLE 2 OF TITLE 21 OF THE GUAM CODE ANNOTATED RELATIVE TO UPDATMG AND IMPROVING THE REAL ESTATE (DEALERS) LAW. *Bill No. 8CS)-AN A(JT RELATIVE TO AUTHORIZING?HE GUAM HOUSING CORPORATION TO EXTEND THE MAXMUM AMORTIZATION LOAN PERIOD FOR FIRST-TIME HOMEOWNERS AND LOW/MODERATE INCOME FAMILIES. TO ALLOW FOR MORE FEASIBLE PAYMENT ARRANGEMENTS AND TO INCREASE QUALIFICATION OPPORTUNITIES FOR FINANCING NECESSARY FOR THE CONSTRUCTION OR PURCHASE OF THEIR HOMES. *Bill No.36CS)-AN A ato REPEAL AND REENACT 4101(a) OFTITLE 4, GUAM CODE ANNOTATED (GCA) RELATlVE TO PREFERENCES FOR CRIMINAL NSTICE ACADEMY GRADUATES. *Confirmation Hearinc-GOVERNOR'S A PPOmNT OF MR FREDERlC A. LEON GUERRERO TO SERVE AS MEMBER OF THE BOARD OF EQUALIZATION TO EXPIRE ON FEBRUARY 16. 2003. Your presence at this meeting is greatly appreciated. 'Ihank you for your attention to this n&itter. Sincerely yours, KALEO S. MOYLAN Senator Tel. (671) 472-3342/3 Fax (6x1472-3420 Sinajana Shopping Mall Phase I1 Suite 16B m Route 4 Sinaiana, Guam 96916 U.5.A.

Tel. (671) 472-3342/3 Fax (671) 472-3440 Sinajana Shopping Mall "base I1 Suite 16B. m Route 4 r.?ajana, Guam 96926 U.S.X. D (1 Senator Kaieo S. nioylan Chairperson, Commiitee on Housing, General Government Services and Foreign Affairs Mi~la'Bente Singko Nu Lil~eslaturan ~lt\ltnn Twenty-Fifth Guam Legislature February 24,1999 MEMORANDUM TO: FROM: SUBJECE Members, &mmittee on Housing, Gened Government Services & Foreign Affairs Chairman Public Hearing This is to inform you that the Committee onhadsining, General Gavunment ~ervick and Foreign Affairs will be conducting a public hearing on Thursday, March 4,1999, at 8:30 am. in the Guam Legislature Public Hearing Room on the following: I - *Bill ''I 4M-AN ACT TO REPEAL AND REENACT ~~104203,1042U4,1M206,104207,104208, AND 104209: REPEAL AND REENACT @104210 AND 104211 ALL OF ARTICLE 2 OF TITLE 21 OF TEE GUAM CODE ANNOTATED RELATIVE TO UPDATING AND IMPROVING THE REAL ESTATE (DEALERS) LAW. *Bill No. 8(LSkAN ACT RELATIVE TO AUTHORIZING THE GUAM HOUSING CORPORATION TO EXTEND THE MAXIMUM AMORTIZATION M AN PERIOD FOR FIRST-TIME HOMEOWNERS AND LOWIMODERATE INCOME FAMILIES, TO ALLOW FOR MORE FEASIBLE PAYMENT ARRANGEMENTS AND TO INCREASE QUALIFICATION OPPORTUNITIES FOR FINANCING NECESSARY FOR THE CONSTRUCTION OR PURCHASE OF THEIR HOMES. *Bill No.36KSLS)-AN ACT TO REPEAL AND REENACT 4101(a) OF TITLE 4, GUAM CODE ANNOTATED (GCA) RELATIVE TO PREFERENCES FOR CRIMINAL JUSTICE ACADEMY GRADUATES. *Confinnation Hearin~40VERiiOR'S APPOINTMENT OF MR FREDERIC A. LEON GUERRERO TO SERVE AS MEMBER OF THE BOARD OF EQUALIZATION TO EXPIRE ON FEBRUARY 16,2003. Your presence at this meeting is greatly appreciated. Thank you for your attention to this matter.??ez!i KAL Cc. All Senators Production Room Charman, &mmiaee on Rules Executive Director Protocoi Audio 0. M Archives Clerk of the Legislature Maintenance All Media

OFFICE Senator Kaleo S. Moy n Committee on Housin& General Government Services and Foreign Affairs MinaBente Singko Na Lihslahuan Guahan 25th Guam Legislature DATE Senator F.B. Aguon Senator E.C. Bermudes Senator A.C. Blaz Senator J.M.S. Brown 3 :36pn. Senator E.B. Calvo Senator MG. Camacho a/s/? 9 3 :3hpfl,&dY 5fi~dE2 Senator M. Forbes V.Speaker Kasperbauer Senator A.C. Lamorena 2'1.C.$q 3 : 3 5 - Senator Carlotta L.G. Senator V.C. Pangelinan Senator J.C. Salas J-LS-LjC/ y.2 5-j~ $L rihk &- senator S.A. ~anchez 8Zm $ J&& r - Speaker A.R Unpingco,-_ - -. - v,,l, > - Executive Director Clerk of the Legislature Protocol fa J9 2.'6.3;& 3. ZRQNC SM~~ Audio Maintenance i7/pp %w 62 ~&3kfl IZmc7-1m C&ni.,*/,4 Z-L kern? m

8 0-0. c?.- LOCAL,,.,..,,.,.,,,......,........,... 4 N & PORT AUTHORIN OF GUAM Palasyo, Agana Heighk. Adverse ness; executive session. For mare missal; new business; genetd busi- tano at 475-425' 7 BOARD OF DIRECTORS: 10 a.m. action appeal of Daniel L.G. informalion, call 4751 300/01. ness; executive session. For more a Ful, 26, txxlrdconference roorn, Soblon vs. GPA, dismissal; new information, call 4751 300/01. GTA BOARD OF DIRECW 2 Cabms Iskuds, Pi. Agenda copies business; general business; execu- COUNCIL ON SENIOR CIIIZENS: p.m. Morch 11, GTA confe; S uvoilable. Those with disabilities live session. For mare infomation, Monthly meeting, 3 p.m. March COUNCIL ON ME YEAR 2000: 0 room, Upper Turnn. Thore a who need special accommoda- call 475-1300/01. 4, Minondo conference room. 10a.m. March 5, Govemor'scon- disabilities who need rpecic L; lions, ek., should call Si- De- Those with disabilities who need ference room, RIB complex, commodations, etc., shoulc d los Santos at 477-5931, ext. 430, MAYORS COUNCIL OF GUAM: s ecial accommodations, etc., Adelup. Those with dimbilities'who 479-8607. or page 720-6056. 10 a.m. March 3, council's con-. 4 ould call 475-0263. need special accommodations, )i! CO~~MISSDN ON DECOLO- fernce ram, 8 complex, INTERIM GOVERNING BOARD etc., shouldcallgeorge kmba at CHAMOUO LANDTRUST( ' Reslaurant, Mangilao. For more For more infomlation, call Melva lic hearing, 6:30 p.m. March 4, BOARD OF COSMETOLOGY: ule and ik regular meetin! infarmdon, NIZATION'S STATEHOOD TASK Adup. For mare informotion, call OF EDUCATION'S COMMITTEE 475-9248. MLSSION: Public hearing o FORCE: Noon Feb. 26, ladera 477-6886 or -8461 or 472-6940. FOR RENAMING SCHOOLS: Pub- proposed agriculture ke s call 475-9222. Dela Peno at 477-6886. Aprw Heights Elrmenbry Schod Nrm March 8, Hmlth Profesd a.m. March 13, Building 3 GEDA BOARD OF DIRECTOR% REIIREMEM FUND BOARD OF cak~eria. Teslimot.ies on renam- Licensing office, 1302 E. Sun3 Cenhd Ave, fiyon. Co ies 10 o m Feb 26, Suite 51 1, 5th TRUSlEES: 5:30 p.m. March 3, in Agana Heighk Elementary Blvd.,Ton. Agendacapiesowil- proposed schedule c/' m k h, KC hikling, Tmuning. Those Relirement Fund conference rm, S C to Rosario ~ iaitano Soblan able at 1304 E. Sunset Bbd. ll~ose icked up at the c-issiol~ with disabiliiies who need ial Maite. Those with disabiliiies who Elementary Schod. For more in- with disabilities who need Ece. Thqse with dl. tlitie, accommoda~ions, ek., shou "P" d call need special accommodations, fardon, call 734-4902/3. ~~~ammcdations, etc., sh rid d call need special accommoda Bemord Punzalan at 647-4332. etc., should call 475-8900/1. COMMITTEE ON HOUSING, ' 475-0251/2. etc., should call Teresa Tailc COMMIFIEEON MMARY, PUB- GCC BOARD OF TRUSIEES: Semi- GENERAL GOVERNMEM SER- 475-4259. UCSM, CONSUMER PROTEC- monthly meeting, 6 p.m. March VlCES AND MRilGN AFFAIRS: MASS TRANSIT AUTHORITY WN AND HUMAN RESOURCES 3, president's office conkrence PuMic hearing, 8:30 a.m. March BOARD OF DIRECIORS: 6 p.m. GTA BOARD OF DIRECT0 WLOPMENI: Publicharing, 2- room, Mangilm. Agenda copies 4, 1 Liheslaturan public hearing March 9, cmkdsconferenceraxn, p.m. March 25, GTA conk 5 p.m. Feb. 26,l ljheslatuion Gua- available by calling 735-5637. room, Hag&%. Bills 4 (LS), 8 (LS) Hag6tiio. Those wih disabilities room, Upper Tuman. Thos ban p$llc brig m, m. Those wih disabilities need and 36 (6). CMlfidon hearin who need special occommada- disabiliiies who need rpeci Bills 47,51,52,62,76 d82. For s ecial accammadatians, elc., on g3uerndsrppoinbnenl0f F J lions, etc., should call Romono cammadotions, etc., shod mxe information call office of Sen. Jould call Jan Milligan d 735- eric A. Leon Guerrero to serve as Perez at 4754682 or TDD d 475-479-8607. John Salas, 472-3431 or pager 5582/3 or TDD at 734-8324 or Board of ~qdization &, For 4M)I. 720~6787. -5236. more informotion call 472- Miscellaneous: CIVIL SERVICE COMMISSION 3342/3. CHAMORRO REGISIRY ADVlSQ llle Guam Board of Cosme I 1: Day &d hd- BOARD: 5:30 p.m. March 3, CX CIVIL SERVICE COMMISSION RY BOARD: 10 a.m. March 10, announces hat he Health f iday. No meetings rheduled, conference room, 490 Cholan BOARD: 5:30 p.m. h r d 4, ~ CX Election - Commission's conference s i d Licensing ofhce is ace Palasyo, +pa Iieig111s. bntinu- conference roow, 490 Cholan roam, 2nd floor, GCK Building, applications id vita dla Nub,, ~,,,:I r I' - TI. I I: I I : r,...rr;l'r.f 21.~1,. p