Fiscal Note - SB 0291 - Revises Regulation of Real Estate Appraisers
L.R. NO. 0908-03
BILL NO. SCS for SB 291
SUBJECT: Economic Development Department; Professional Licenses
TYPE: Original
DATE: February 25, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
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 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development (DED)-Professional
Registration (DPR) assume the proposed legislation would result in the
licensure of approximately 325 additional applicants in the last ten months
of FY 98. 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 98. Additional revenue for the following fiscal
years would be 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 would result 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 a few
additional investigations, it is possible the annual licensing fee would be
reduced in future fiscal years.
It is assumed the existing licensing system would be adequate to handle an
additional 325 technicians per year.
The Real Estate Appraisers Fund would reimburse the PR Fees Fund for the
contracted clerical services.
Officials from the Missouri Department of Transportation (DHT) and the State
Tax Commission (TAX) assume the proposed legislation would have no fiscal
impact on their agencies.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
REAL ESTATE APPRAISERS FUND
Revenue-Division of Professional Registration (DPR)
Licensure Fees/Renewals $89,375 $48,750 $48,750
Costs-DPR
Transfer to PR Fees Fund ($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
Costs-DPR
One-time clerical fee ($11,784) $0 $0
ESTIMATED NET EFFECT TO
PR FEES FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(6 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposed legislation would change the Missouri Real Estate Appraisers
licensing/certification law from voluntary to mandatory and 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, 1998. An appraisal done in
conjunction with a business valuation would be required to be done by a
state-licensed or state-certified appraiser. 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.
This legislation could affect Total State Revenues.
SOURCES OF INFORMATION
Department of Economic Development-Professional Registration
Missouri Department of Transportation
State Tax Commission
This Fiscal Note is not an official copy and should not be quoted or cited.