Legislature(1997 - 1998)
01/27/1998 01:38 PM Senate L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 235 - BOARD OF CERTIFIED REAL ESTATE APPRAISERS
CHAIRMAN LEMAN called the Senate Labor and Commerce Committee
meeting to order at 1:38 p.m. and announced SB 235 to be up for
consideration.
MS. CATHERINE REARDON, Director, Division of Occupational
Licensing, supported SB 235. She noted there was a $0 fiscal note,
although there is a cost of $35,500 for the Board of Real Estate
Appraisers that is already built into their budget. They agreed
that it is in the public's interest and necessary due to federal
requirements to have licensing of real estate appraisers.
SENATOR LEMAN asked if there were other issues regarding real
estate appraisers that she would like to mention.
MS. REARDON answered not at this time.
Number 63
MR. JOHN WOLF, Chairman, Real Estate Appraisers Board, supported SB
235. He said the Board has identified three areas that would
require statutory change. The first in priority is to license
trainees. Currently it's just an option. The change would be to AS
08.87.310 (a). The reason is that now there are only five
certified trainees in Alaska and there are many more than that who
are working as appraisal assistants. They are unlicensed and under
the supervision of a certified appraiser, but there is no
requirement for them to have any training whatsoever. Board
members know of some people who function in this capacity for three
or four years and actually complete appraisal reports and have it
co-signed by the supervising appraiser. Approximately half of the
United States require licensing of trainees now.
The Board's next concern is mandatory state certification of all
real estate appraisers. Currently State law says you must be a
certified appraiser only for federally related transactions. This
means any privately funded sales transactions can be done by
someone who is not certified.
Finally, the Board would like to increase the continuing education
requirements to 40 hours for each biannual renewal period.
Currently the number of hours required is in regulation, but under
AS 08.87.020 (3) there is a requirement that we not exceed the
federal minimums in education and training experience. So we are
capped at whatever the federal minimum is.
MR. WOLF said that currently there are 174 certified appraisers -
83 of them are general appraisers who appraise commercial
properties and 84 residential appraisers. There are five trainees
and two courtesy licenses issued to out-of-state appraisers.
SENATOR KELLY asked if a general appraiser could appraise
residential property.
MR. WOLF answered yes, but a residential appraiser can appraise
anything up to 10 units as long as the income is not required in
the appraisal.
CHAIRMAN LEMAN asked if there was consensus on these issues within
the profession.
MR. WOLF replied that all of these things were approved by the
Board unanimously, but there are probably differing opinions within
the industry. He hasn't found anyone against the licensing of
trainees.
CHAIRMAN LEMAN commented he couldn't see why anyone would care
about being licensed if they were already doing work under a
certified appraiser.
MR. WOLF replied there is a quality issue in terms of the report
that is completed by someone who is not certified competing with a
report by someone who is fully certified.
CHAIRMAN LEMAN asked if they had a professional society that
discussed this issue like engineers have. He would never think of
signing off on someone else's work unless he was integrally
involved in preparing it.
MR. WOLF responded that they both work to higher standards than
some other people.
CHAIRMAN LEMAN asked if charges had ever been brought against
anyone who is operating this way. MS. REARDON resounded from the
audience negatively.
CHAIRMAN LEMAN asked the committee if they had any problems with
amending the bill to include these changes if they had support from
within the profession.
SENATOR KELLY replied that one of his concerns is not if they have
support in the profession, but from people who are trying to join
the profession. In his experience, these types of boards tend to
try to raise the gates on new entries creating monopolies for a
small group of people.
SENATOR MACKIE agreed with Senator Kelly and suggested leaving the
bill as it is and dealing with the other issues in separate
legislation. He moved SB 235 from committee with individual
recommendations.
CHAIRMAN LEMAN objected for purposes of discussion.
MR. WOLF responded that the Board had no problem with the bill
going through in its current form. He was merely expressing three
items that they recently adopted. He explained that the mandatory
licensing would affect some people who are doing appraisals and are
not involved in a federally related transaction, but it wouldn't
change any current standard or requirements for becoming an
appraiser. It's just that during that period of time when you're
gaining experience, the required 1,500 hours in a 24-month period,
you would be a trainee rather than unlicensed appraiser.
SENATOR KELLY asked what the advantage was if you are putting in
the same amount of time.
MR. WOLF answered that there are people functioning as an assistant
who have absolutely no intention of ever becoming an appraiser and
have never taken any training or education.
SENATOR KELLY asked if they want to license trainees, were they
talking about adding some kind of educational requirement.
MR. WOLF responded that there is now a 75-hour requirement in
place. They are not adding a trainee classification.
CHAIRMAN LEMAN asked if a trainee could not engage in the practice
of real estate appraisal under the direct supervision of a
certified real estate appraiser unless they were a registered
trainee. MR. WOLF said that is correct.
CHAIRMAN LEMAN said he would like to see these ideas written down
before they pass the bill from committee.
SENATOR KELLY requested that Ms. Reardon look at the proposed
amendments also and submit a position paper on what the Division
thinks at that stage.
CHAIRMAN LEMAN affirmed that request and said they would hold the
bill.
SENATOR MACKIE withdrew his motion.
| Document Name | Date/Time | Subjects |
|---|