Legislature(2005 - 2006)SENATE FINANCE 532

02/22/2005 09:00 AM FINANCE

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09:04:45 AM SJR6
09:04:45 AM Start
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved SJR 6 Out of Committee
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
     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                                                            
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                                                            
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.                                                                                             

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