Legislature(1993 - 1994)
04/25/1994 04:30 PM Senate JUD
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
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.