Date: 02/04/2009

Final
BILL SUMMARY for SB09-028

SENATE COMMITTEE ON STATE, VETERANS & MILITARY AFFAIRS

Votes: View--> Action Taken:
Moved that Senate Bill 09-028 be referred to the CPASS


01:45 PM -- Senate Bill 09-028

Senator Harvey, prime sponsor, said that Senate Bill 09-028, will permit the increase of fees by the Division of Real Estate on realtors of no more than 20 percent per year. He said that he has been contacted by many realtors in regard to the issue. He said that the Division of Real Estate increased license fees dramatically in the last year, and that he believes that the General Assembly should authorize any increases in fees of this magnitude. He said that divisions of state government should be compelled to defend such fee increases before the General Assembly.

The following persons testified in regard to Senate Bill 09-028:

01:49 PM -- Erin Toll, representing the Division of Real Estate, opposed Senate Bill 09-028 and said that in a real estate downturn it is critical to maintain aggressive enforcement. She noted that the Division of Real Estate is a cash-funded agency and that the ability of the division to set its fees should be retained. She said that the division's efforts regarding mortgage fraud are working. She said that fines that are collected will eventually result in the reduction of fee levels. She noted that the fees allow the division to forgo the receipt of general funds. She commented on the process by which the fees are set within the Department of Regulatory Agencies. She noted that, at the peak of registration, the state had approximately 50,000 real estate brokers, and that this number has dropped to 46,000 licensees at present.

02:01 PM -- Pres Montoya, Greeley, representing himself, said that he is a member of the Colorado Real Estate Commission and that he opposes Senate Bill 09-028. He said that Senate Bill 09-028 will prevent the division from effectively enforcing the laws of the state to prevent real estate fraud. He said that Greeley has been severely affected by foreclosures, and that the fees are not a burden on the industry.

02:08 PM -- Amy Dorsey, representing the Colorado Association of Realtors, said that her organization represents more than 26,000 of the state's realtors. She supported Senate Bill 09-028. She said that the division protects the integrity of real estate transactions. However, she noted that sufficient notice of the fee increase was not given to realtors. She said that the licensing fee has fluctuated over the last few decades. She believes that a cap on the fees is appropriate.

02:23 PM -- Ms. Toll responded that the licensing fees have stayed the same from 2002 to 2006, while the number of realtors licensed in the state increased by 9,000. She said that there was minimal enforcement activity regarding realtors prior to 2007. She said that the division has decreased operating costs as far as is possible.

02:29 PM -- Neel Levy, representing the Colorado Association of Real Estate Appraisers, supported Senate Bill 09-028. He said that the fee hike is a burden on realtors in the current recession. He said that he is grateful for the enhanced enforcement activities at the Division of Real Estate.

02:34 PM -- Kim Henzfeldt, Aurora, representing himself, said that the fee increase is excessive, and that the agency is operating in a difficult environment.

02:38 PM -- J.M. Fay, Denver, representing herself, supported the fee increase. She testified that the fees are relatively low in her opinion and she opposed Senate Bill 09-028.
BILL:SB09-028
TIME: 02:50:00 PM
MOVED:Schultheis
MOTION:Moved that Senate Bill 09-028 be referred to the Committee of the Whole. The motion passed on a 3-2-0 roll call vote.
SECONDED:
VOTE
Boyd
No
Cadman
Yes
Schultheis
Yes
Bacon
No
Williams
Yes
Final YES: 3 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS