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.