House Staff Analysis: PCS for HB 491 Florida Real Estate Appraisal Board (Regulatory Reform Subcommittee)

Summary

A House of Representatives staff analysis of PCS for HB 491, Florida Real Estate Appraisal Board, sponsored by the Regulatory Reform Subcommittee and dated March 22, 2021, with SB 346 listed as an identical or similar bill. It describes the Board within the Department of Business and Professional Regulation, which regulates real estate appraisers under ch. 475, part II, F.S., and its nine-member composition. The analysis reports 6,655 active certified real estate appraisers and 219 active real estate appraisal management companies in the state. It states the PCS decreases Board members representing the appraisal management industry from two to one and increases members representing the general public from two to three, amending s. 475.613, F.S. It finds no fiscal impact on state or local governments and gives an effective date of November 1, 2021.

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Full text

                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     PCS for HB 491 Florida Real Estate Appraisal Board
SPONSOR(S): Regulatory Reform Subcommittee
TIED BILLS:       IDEN./SIM. BILLS: SB 346

  REFERENCE                                                       ACTION                   ANALYST                STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  Orig. Comm.: Regulatory Reform Subcommittee                                              Thompson               Anstead

                                                        SUMMARY ANALYSIS
The Florida Real Estate Appraisal Board (Board) within the Department of Business and Professional
Regulation (DBPR) regulates real estate appraisers under of ch. 475, part II, F.S. The Board, through its rules,
is authorized to:
     Regulate the issuance of licenses, certifications, registrations, and permits;
     Discipline appraisers;
     Establish qualifications for licenses, certifications, registrations, and permits;
     Regulate approved courses;
     Establish standards for real estate appraisals; and
     Establish standards for and regulate supervisory appraisers.

The Board consists of nine members, each appointed by the Governor and subject to confirmation by the
Senate. The Governor may remove any Board member for cause. The membership includes:
    Four members who are real estate appraisers who have been engaged in the general practice of
      appraising real property in this state for at least 5 years immediately preceding appointment;
    Two members who represent the appraisal management industry;
    One member who represents organizations that use appraisals for the purpose of eminent domain
      proceedings, financial transactions, or mortgage insurance; and
    Two members who represent the general public and are not connected in any way with the practice of
      real estate appraisal.

PCS for HB 491 revises the membership of the Board as follows:
   Decreases the number of Board members who represent the appraisal management industry from two
      members to one.
   Increases the number of Board members who represent the general public from two members to three.

The PCS may have an insignificant fiscal impact on state government.

The effective date of the PCS is November 1, 2021.




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: pcs0491.RRS
DATE: 3/22/2021
                                                        FULL ANALYSIS

                                                I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Present Situation

         The Florida Real Estate Appraisal Board (Board)1 within the Department of Business and Professional
         Regulation (DBPR) regulates real estate appraisers under of ch. 475, part II, F.S. The Board, through
         its rules, is authorized to:
               Regulate the issuance of licenses, certifications, registrations, and permits;
               Discipline appraisers;
               Establish qualifications for licenses, certifications, registrations, and permits;
               Regulate approved courses;
               Establish standards for real estate appraisals; and
               Establish standards for and regulate supervisory appraisers.2

         According to the most recent data, there are 6,655 active certified real estate appraisers,3 and 219
         active real estate appraisal management companies, in the state.4

         The Board consists of nine members, each appointed by the Governor and subject to confirmation by
         the Senate. The Governor may remove any Board member for cause. The membership includes:
              Four members who are real estate appraisers who have been engaged in the general practice
                of appraising real property in this state for at least 5 years immediately preceding appointment;
              Two members who represent the appraisal management industry;
              One member who represents organizations that use appraisals for the purpose of eminent
                domain proceedings, financial transactions, or mortgage insurance; and
              Two members who represent the general public and are not connected in any way with the
                practice of real estate appraisal.5

         Members of the Board are appointed for four-year terms, and may not be appointed for more than two
         consecutive terms. The headquarters of the Board is in Orlando, Florida. The Board must meet at least
         once each calendar quarter to conduct its business. Members must elect a chairperson at the first
         meeting each year.6 Each member of the Board is entitled to per diem and travel expenses as set by
         legislative appropriation for each day that the member engages in the business of the Board.7

         There is currently one vacancy on the Board.8 There are two members with current appointments
         expiring October 31, 2021 and six continue to hold office through the expiration of their term, including
         both public members and both appraisal management industry representatives.9



1
  The Florida Real Estate Commission regulates real estate agents, associates, and schools, has 293,012 active licensees, and consists
of seven members.
2
  S. 475.613(2), F.S.
3
  Department of Business and Professional Regulation, Annual Report, Divisions of Professions, Certified Public
Accounting, Real Estate, and Regulation, Fiscal Year 2018-2019,
http://www.myfloridalicense.com/DBPR/os/documents/DivisionAnnualReport_FY1819.pdf , at page 19 (last visited
Mar. 17, 2021).
4
  Email from Colton Madill, Deputy Legislative Affairs Director, Department of Business and Professional Regulation, RE: Real
Estate Appraisal Management Companies, (Mar. 22, 2021).
5
  S. 475.613(1), F.S.
6
  Id.
7
  Id.
8
  Department of Business and Professional Regulation, REAL ESTATE APPRAISAL – BOARD INFORMATION
http://www.myfloridalicense.com/DBPR/real-estate-appraisal-board/board-information/#1509044906969-7080e654-a662 (last visited
March 8, 2021).
9
  Id.
STORAGE NAME: pcs0491.RRS                                                                                                     PAGE: 2
DATE: 3/22/2021
           In 2010, the membership of the Board was increased from seven members to nine members with the
           addition of two members representing the appraisal management industry, based on the state’s
           adoption of the policy to include the licensing and regulation of appraisal management companies with
           real estate appraisers. Appraisal management companies are business entities that administer
           networks of independent appraisers to fulfill real estate appraisal assignments on behalf of lenders and
           were not regulated in Florida before 2010.10

           Proposed Changes

           PCS for HB 491 revises the membership of the Board as follows:
              Decreases the number of Board members who represent the appraisal management industry
                 from two members to one.
              Increases the number of Board members who represent the general public from two members
                 to three.

       B. SECTION DIRECTORY:
           Section 1:       Amends s. 475.613, F.S., relating to the Florida Real Estate Appraisal Board.

           Section 2:       Provides an effective date.


                              II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

       A. FISCAL IMPACT ON STATE GOVERNMENT:

           1. Revenues:
               None.

           2. Expenditures:
               None.

       B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

           1. Revenues:
               None.

           2. Expenditures:
               None.

       C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
           None.

       D. FISCAL COMMENTS:
           None.




                                                     III. COMMENTS

       A. CONSTITUTIONAL ISSUES:


10
     Chapter 2010-84, Laws of Fla.
STORAGE NAME: pcs0491.RRS                                                                                    PAGE: 3
DATE: 3/22/2021
       1. Applicability of Municipality/County Mandates Provision:
           Not applicable. The bill does not appear to require counties or municipalities to take an action
           requiring the expenditure of funds, reduce the authority that counties or municipalities have to raise
           revenue in the aggregate, nor reduce the percentage of state tax shared with counties or
           municipalities.

       2. Other:
           None

   B. RULE-MAKING AUTHORITY:
         The bill does not appear to create a need for rulemaking or rulemaking authority.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.

                            IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
   N/A




STORAGE NAME: pcs0491.RRS                                                                                   PAGE: 4
DATE: 3/22/2021


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