SENATE BILL NO. 129 "An Act extending the termination date of the Board of Certified Real Estate Appraisers; and providing for an effective date." 5:57:02 PM TALLY TEAL, STAFF, SENATOR ANNA FAIRCLOUGH, stated that the original version of the bill was a sunset bill that extended the board of certified real-estate appraisers for another 4 years; however Department of Commerce, Community and Economic Development had approached the sponsors with additional changes that needed to be made in order to be in compliance with federal requirements. The requirements were laid out in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which amended Title 11 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989. She stated that Section 1 dealt with the extension of the board. An audit completed in June of 2013 recommended that the board be extended until June 2018. The 4 year extension was half of the 8 year maximum and was shortened because of the projected increase in federally mandated responsibilities. She stated that the remaining sections were designed to address the federal mandates. 5:58:23 PM Co-Chair Kelly MOVED to ADOPT the proposed committee substitute for SB 129, Work Draft 28-LS1208/P (Martin 3/5/14) as a working document. There being NO OBJECTION, it was so ordered. 5:58:53 PM Ms. Teal presented a sectional analysis to the bill: Section 1. Amends AS 08.03.010(c)(19) to extend the termination date of board by four years. Section 2. Amends AS 08.87.020 by adding a reference to the Dodd-Frank Wall Street Reform and Consumer Protection Act to the powers and duties of the board. Section 3. Repeals and reenacts AS 08.87.110(c), which establishes a clearer pathway to license reciprocity with other compliant states. Section 4. Amends AS 08.87.110(e) by adding a reference to the Dodd-Frank Wall Street Reform and Consumer Protection Act to institutional real estate appraiser certification requirements. Section 5. Adds a new subsection, AS 08.87.110(h), which allows the board to issue a general or residential real estate certificate to a person who does not meet the normal requirements if the board deems them otherwise qualified. Section 6. Amends AS 08.87.300(a) to lengthen record retention requirements from three years to five years, and to clarify the requirements for cases involved in litigation. Section 7. Repeals and reenacts AS 08.87.310, effectively removing trainee/supervisor programs from statute and allowing the board to implement the programs through regulations. Section 8. Amends AS 12.62.400(a) to give the Department of Public Safety the authority to complete background checks on applicants for real estate appraiser certification. Section 9. Repeals AS 08.87.300(b), which is rendered unnecessary by the changes made to record retention requirements in section 6 of this bill. Section 10. Amends the uncodified law of the State of Alaska by adding a new section to address the applicability of sections 6 and 7, relating to record retention requirements, and sections 2, 5, 8, and 9, relating to changes in licensing and certification requirements. More specifically, it clarifies that the change in record retention requirements apply to records created on or after the effective date of this Act, and that the changes to certification requirements apply to new certifications issued on or after the effective date of this Act, and to currently-held certifications when they are renewed. Section 11. Provides for an immediate effective date under AS 01.10.070(c). 6:01:08 PM KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF LEGISLATIVE AUDIT, relayed that the division had conducted a sunset review of the board with the purpose to determine whether the board was serving the public interest and should be extended. The division concluded that the board was protecting the public interest by effectively licensing and regulating real estate appraisers. The division had recommended a 4 year extension due to the change in federal law that significantly expanded the board's responsibilities. She stated that the division did have 2 recommendations, neither of which were directed to the board, but to the Division of Corporations, Business and Professional Licensing. The first recommendation was that the division should improve their administrative support to the board, including delays in investigations. Secondly, it was recommended that the director should improve the investigative case management system. She noted that the division issued recommendations for improvements in case management systems for all occupational board sunsets in 2013. 6:03:01 PM Co-Chair Meyer CLOSED public testimony. 6:04:06 PM Ms. Marasigan spoke to the new Senate Finance fiscal note attached to the bill. She noted that the first page of the note reflected no changes from the previous note. She noted that the major change to the note could be found on page 2, which included a summary of the board's revenues, expenditures and carry forward balance. She deferred any additional questions concerning the fiscal note to David Teal, Director, Legislative Finance Division. 6:05:48 PM Co-Chair Kelly MOVED to REPORT CSSB 129(FIN) out of committee with individual recommendations and the accompanying fiscal note. 6:06:22 PM CSSB 129(FIN) was REPORTED out of committee with a "do pass" recommendation and with a new fiscal impact note from the Senate Finance Committee.