Legislature(2003 - 2004)
05/03/2004 09:06 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 464
"An Act extending the termination date of the Board of
Certified Real Estate Appraisers."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill, sponsored by the House Rules
Committee at the request of the Legislative Budget and Audit
Committee, "extends the termination date of the Board of Certified
Real Estate Appraisers to 2008."
PAT DAVIDSON, Division of Legislative Audit, testified that this
bill is consistent with the recommendations in the document titled
"Board of Certified Real Estate Appraiser's Sunset Review" [copy on
file]. The report did not suggest either operational or statutory
changes.
Ms. Davidson added that the audit includes an assessment of the
Board of Certified Real Estate Appraisers' financial self-
sufficiency. The Board had accumulated a deficit at the end of FY
02; however, according to the sunset review the Board was moving
toward financial self-sufficiency at the end of FY 03.
Senator B. Stevens asked the Board of Certified Real Estate
Appraisers' annual revenues.
Ms. Davidson replied that the Board's annual revenue in FY 02 was
$18,676.
Senator B. Stevens understood that the Board is funded with fees
collected from licenses issued to real estate appraisers every two
years, thus operating on a two-year revenue cycle.
Ms. Davidson affirmed.
Senator B. Stevens asked the number of times the termination date
of the Board has been extended.
Ms. Davidson replied that this Board has not undergone as many
sunset reviews as other boards because the licensing of real estate
appraisers was implemented through federal legislation adopted in
1986: the Financial Institutions Reform, Recovery and Enforcement
Act of 1989. She estimated this is the third review conducted by
the Division of Legislative Audit of the Board of Real Estate
Appraisers.
Senator B. Stevens suggested that the termination date of the Board
of Real Estate Appraisers could be extended beyond four years.
Amendment #1: This amendment would extend the termination date of
the Board of Real Estate Appraisers from the proposed July 1, 2008,
to July 1, 2010.
Senator B. Stevens moved for adoption.
Ms. Davidson informed that the Division of Legislative Audit has
approved an overall review of the sunset process. The statutorily
suggested sunset extension for boards and commissions is currently
four years; however, in the Division's upcoming audit the four-year
extension would be reevaluated.
Co-Chair Wilken objected to the adoption of the amendment for an
explanation.
Senator Dyson commented on the general intent of the sunset
provisions to allow the elimination of a board or commission.
Although extending the review date could hamper this, he did not
anticipate that this Board would be terminated. He did not object
to the amendment.
HENRY WEBB, Committee Aide, Legislative Budget and Audit Committee
Aide and Staff to Representative Ralph Samuels, testified that the
sponsor of the bill would not object to the adoption of this
amendment.
Co-Chair Wilken removed his objection.
The amendment was ADOPTED without objection.
Co-Chair Green asked if the Board of Certified Real Estate
Appraisers was the board that experienced rate changes and
licensing issues approximately six to seven years ago.
Ms. Davidson was unsure and noted that a review of the Real Estate
Commission is due this year.
Co-Chair Green asked if the cause of the cyclical nature of the
Board of Real Estate Appraisers' revenue balance was a result of
operating on a biennial revenue cycle.
Ms. Davidson answered yes, and explained that the real estate
appraiser licenses issued by the Board are renewed for a two-year
period, resulting in cyclical revenues.
Co-Chair Wilken referred to the "Board of Certified Real Estate
Appraisers' Sunset Review", specifically a letter written by Edgar
Blatchford, Commissioner, Division of Legislative Audit. Co-Chair
Wilken offered for consideration Commissioner Blatchford's
recommendation to eliminate the Board, but continue licensing real
estate appraisers under the Division of Occupational Licensing. Co-
Chair Wilken understood this option was discussed in a House of
Representatives' hearing of this bill at which time real estate
appraisers opposed such action and requested that their current
licensing structure remain in place. He asked for a qualification
of this information.
Ms. Davidson did not recall the real estate appraisers' position.
She pointed out that legislation extending termination dates of
boards does not affect licensing functions. She emphasized that the
existence of a board typically ensures that regulations and
industry awareness are maintained.
Co-Chair Green offered a motion to report the bill as amended from
Committee with individual recommendations and accompanying fiscal
note.
Without objection, CS HB 464 (FIN) MOVED from Committee with fiscal
note #1 of $28,300 from the Department of Community and Economic
Development.
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