Legislature(2005 - 2006)SENATE FINANCE 532
02/22/2005 09:00 AM FINANCE
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 47(FIN) "An Act extending the termination date of the Board of Certified Real Estate Appraisers; and relating to the requirements for membership on the Board of Certified Real Estate Appraisers." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Green stated that this bill would extend the life of the Board of Certified Real Estate Appraisers. LALANYA SNYDER, Staff to Representative Ralph Samuels, the bill's sponsor, expressed that this "simple bill" would extend the Board, which is responsible for setting professional standards for the real estate appraisal profession, developing exam standards for the certification of real estate appraisers, and adopting regulations to satisfy state and federal regulations until June 30, 2010. She also noted that the Division of Legislative Audit supports the extension of the Board and that the language changes proposed in the bill would make it "more consistent." The sponsor would appreciate the Members' support of this legislation Co-Chair Green asked for further information regarding the proposal to amend language in Sec 08.87.010 to require that general and residential real estate appraiser Board members should be "certified" rather than "licensed." Ms. Snyder stated that while the terms are used interchangeably; the proposed change would align language in Sec. 08.87.010. Board Created. with the State Statute that utilizes the term "certified." Co-Chair Green pointed out that the Department of Commerce, Community and Economic Development Fiscal Note #1, dated February 20, 2005 would be revised to "more properly" reflect the Board's FY 06 expenses. It was noted that the Board was terminated on June 30, 2004, and, as routine for terminated boards, was allowed one-year to conclude its affairs. PAT DAVIDSON, Legislative Auditor, Division of Legislative Audit, informed that, in order to quality for federal deposit insurance and to participate in selling federal mortgage loan programs such as Fannie Mae and Freddie Mac, financial institutions in the State must utilize State certified real estate appraisers. While Audit Control Number: 08-20024-03, dated July 17, 2003 did not include any recommendations other than supporting the extension of the Board, it should be noted that the Board's financial deficit had been addressed last year via such things as increasing fees and reducing costs. No financial concerns are reflected in the Audit. Co-Chair Green understood therefore that any areas of concern have been addressed. She also noted that this Board serves an important role. Senator Hoffman asked for further information regarding language on page eight of the Audit in the section titled "Recent federal study determined oversight of real estate appraisers should be enhanced" that specifies that the Board's "scope should be expanded." Ms. Davidson replied that, included in the Audit is reference to a prior General Accounting Office (GAO) report that reviewed the entire federal Title XI program and whether qualifications of real estate appraisers should be expanded or enhanced. The State Statute includes language to the effect that certified real estate appraisers in the State "maintain their performance in accordance with the federal requirements for their profession." Therefore, were any changes to occur at the federal level, these professionals would be required to conform to the point at which further State action might be required. She noted that GAO's name has now been changed to the General Accountability Office. Co-Chair Green understood that page seven of the Audit addresses items pertinent to State oversight of these professions and page eight addresses the federal oversight. Co-Chair Green ordered the bill HELD in order to acquire the aforementioned revised fiscal note.