04/25/1994 04:30 PM Senate JUD

 SENATOR TAYLOR brought  CSHB 410(STA)  (REAL ESTATE APPRAISERS)               
 before the committee as the final order of business.                          
                                                                               
 FRED FERRARA, Alaska Appraisers Association, testifying from                  
 Anchorage over the teleconference network in opposition to the                
 legislation, stated they had originally needed the authority to               
 change the statute so that the board can set hours of education               
 that would be consistent with the federal requirements so that the            
 new appraisers coming into the business would meet federal                    
 requirements and would be certified to do work for all the banks,             
 credit unions, etc.  However, the bill has been modified in the               
 House to the extent that it would reduce the present law and cause            
 them to drop some of the education requirements and cause them to             
 drop the experience requirements.                                             
                                                                               
 Mr. Ferrara said the FIREA law was put into effect to get a basic             
 starting law all over the United States so that there would be                
 consistency among the education and experience of appraisers.  It             
 required two years of experience for commercial or residential                
 appraising.                                                                   
                                                                               
 In 1990, the State of Alaska passed legislation that conformed to             
 the federal requirements for education, and it even exceeded the              
 requirements for recertification education by doubling it to 40               
 hours for every two years, which results in the appraisers getting            
 better education and, as a result, they have ways of bringing                 
 people into the field a lot easier with courses offered in the                
 State of Alaska instead of traveling outside.                                 
                                                                               
 Mr. Ferrara said HB 410 would effectively force the board to reduce           
 the recertification education to 20 hours every two years, as well            
 as forcing them to drop the experience requirements from the                  
 present three years for residential and four years for commercial             
 down to two years for everybody.  This would mean that new people             
 coming would have lesser experience than all of the appraisers that           
 are currently certified in the state, and he stated their total               
 objection to these changes.                                                   
                                                                               
 Number 520                                                                    
                                                                               
 SENATOR LITTLE inquired why this legislation was perceived to be a            
 good idea.                                                                    
 Number 525                                                                    
                                                                               
 COMMISSIONER FUHS, Department of Commerce & Economic Development,             
 explained that the legislation came about at the suggestion of the            
 Legislative Budget & Audit Committee in order to make the standards           
 the same as federal law.  He pointed out that only four other                 
 states have different standards than the federal standards.                   
                                                                               
 Commissioner Fuhs stressed the importance of passing the                      
 legislation, because if these changes aren't made before June 30,             
 1994, there will no longer be any more federal housing loans in the           
 state.                                                                        
                                                                               
 Number 575                                                                    
                                                                               
 KARL LUCK, Director, Division of Occupational Licensing, Department           
 of Commerce & Economic Development, said the state can lose its               
 certification, and one of the provisions of losing the                        
 certification is that if, in fact, this auditor board has a finding           
 that the state is not in compliance.                                          
                                                                               
 Number 592                                                                    
                                                                               
 SENATOR DONLEY asked that if the state is currently more stringent            
 than federal law, than why is the state out of compliance.                    
 COMMISSIONER FUHS answered that Alaska is less stringent in                   
 education, but more stringent in experience.  He added that if the            
 House version passes, Alaska won't be able to more stringent in               
 experience which would open the door for more people to be                    
 appraisers.                                                                   
                                                                               
 (SENATOR JACKO took over as Chair because SENATOR TAYLOR had                  
 another commitment to meet.)                                                  
                                                                               
 Number 630                                                                    
                                                                               
 FRED FERRARA pointed out that there is no shortage of appraisers in           
 the Sate of Alaska.                                                           
                                                                               
 SENATOR LITTLE said she would to see a comparison showing what the            
 state has now and how this legislation changes that.  COMMISSIONER            
 FUHS said one could be provided, but reiterated that the bill just            
 says that the state's requirements for appraisers would at least              
 have to meet the federal requirements, but could not exceed the               
 federal requirements.                                                         
                                                                               
 SENATOR JACKO asked if the bill does anything beyond the federal              
 requirements.  COMMISSIONER FUHS answered that it doesn't, and that           
 was done at the request of the banking community.                             
                                                                               
 TAPE 94-41, SIDE A                                                            
                                                                               
 Number 015                                                                    
                                                                               
 Because the committee had lost its quorum, there was no final                 
 action taken on CSHB 367(STA) and the meeting was adjourned at 6:17           
 p.m.