This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0645 - Real Estate Appraisers to be Licensed or Certified
L.R. NO. 1753-03
BILL NO. SB 645
SUBJECT: Licenses-Professional: Real Estate Appraisers
TYPE: Original
DATE: January 12, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Real Estate
Appraisers $77,591 $48,750 $48,750
PR Fees $0 $0 $0
Total Estimated
Net Effect on All
State Funds $77,591 $48,750 $48,750
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development-Professional
Registration assume the proposal would result in the licensure of
approximately 325 additional applicants in FY 97. Based on the current fee
of $125 for application processing and the proposed fee of $150 for the
annual licensing fee, the additional revenue would be $89,375 for FY 97.
Additional revenue for the following fiscal years is based on the annual
licensing fee of $150 x 325 additional licensees for a total of $48,750.
The additional applications would require contract clerical staff to assist
current staff in processing. This would be a one-time cost of $11,784 ($6.80
per hour x 1,733 hours). Additional costs associated with the licensing of
these applicants in regard to postage, printing, telephone, and GR transfers
could be absorbed under current appropriations. However, if this legislation
would result in a larger increase than expected or if the increased number of
licensees results in a substantial number of additional investigations,
additional appropriations in personnel and/or expense and equipment would be
required. On the other hand, if the additional licensees result in few
additional investigations, it is possible the annual licensing fee would be
reduced in future fiscal years.
Officials from the State Tax Commission assume the proposal would have no
fiscal impact on their agency.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
REAL ESTATE APPRAISERS FUND
Income-Division of Professional Registration (DPR)
Licensing Fees $89,375 $48,750 $48,750
Total Income - DPR $89,375 $48,750 $48,750
Costs-DPR
Transfer to PR Fees Fund ($11,784) ($0) ($0)
Total Costs - DPR ($11,784) ($0) ($0)
ESTIMATED NET EFFECT TO
REAL ESTATE APPRAISERS FUND $77,591 $48,750 $48,750
PR FEES FUND
Income-Division of Professional Registration (DPR)
Transfer from Real Estate
Appraisers Fund $11,784 $0 $0
Total Income - DPR $11,784 $0 $0
Costs-DPR
One-time contract clerical fee ($11,784) ($0) ($0)
Total Costs - DPR ($11,784) ($0) ($0)
ESTIMATED NET EFFECT TO
PR FEES FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
0 0 0
DESCRIPTION
The proposed legislation would require that all persons engaged in the
business of real estate appraisal be licensed or certified by the state from
and after July 1, 1997. An appraisal done in conjunction with a business
valuation would be required to be done by a state-licensed or state-certified
appraiser. Currently, licensure is voluntary. A person not licensed or
certified may aid in the performance of an appraisal, provided such person is
personally supervised by a licensed or certified appraiser and also the
appraisal report is reviewed and signed by the licensed or certified
appraiser.
The proposal would exclude the following from appraisal licensure
requirements: 1) one who performs an appraisal on property he/she owns; 2)
any licensed real estate broker or salesman who prepares an appraisal for a
comparative market analysis; or 3) a governmental employee who performs
appraisals within the scope of employment and is not required to be licensed
or certified. The proposal would define the types of certification and
licensing and the necessary licensure and examination requirements. Persons
who have received certification after March 1991 or who have a state license
or certificate as a real estate appraiser issued by the Commission would
receive the same license or certificate without further education,
experience, examination or application fee. However, such persons would be
required to adhere to the continuing education requirements.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Economic Development-Professional Registration
State Tax Commission