Date: 02/23/2012
Final
BILL SUMMARY for HB12-1110
HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT
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02:00 PM -- House Bill 12-1110
Representative A. Williams, prime sponsor, presented House Bill 12-1110. The bill was previously heard on February 21, 2012. This bill redefines the legal meaning of appraisal management companies (AMC) and establishes a licensure program for AMCs in the Division of Real Estate (division) in the Department of Regulatory Agencies (DORA). An AMC license may be given to an individual or any third party entity that, in connection with an appraisal for a mortgage transaction, oversees a network or panel of certified appraisers. The composition of the Board of Real Estate Appraisers (board) is modified to include a representative of an AMC. To receive a license, AMCs must:
- follow application procedures established by the board and pay a fee;
- designate a controlling appraiser to be responsible for the licensed activities of the entity;
- maintain errors and omissions insurance;
- post a surety bond in the amount of $25,000 with the board; and
- submit to a fingerprint-based criminal history check for the controlling appraiser and each principal owner of the entity.
The board may deny a license application based on the outcome of the background check, or based on past disciplinary actions against a controlling appraiser or principal owners. The bill details prohibited acts for licensees and gives the division the authority to investigate and take disciplinary actions, including imposing fines up to $2,500 per offense. The bill establishes misdemeanor penalties for both persons and entities that operate without a valid license.
The bill also requires that applicants for a real estate appraiser license, registration, or certification submit to a fingerprint-based criminal history background check and pay the fee. The board may deny the authority to practice based on the outcome of the background check.
02:11 PM -- Bill Baker, representing the Real Estate Valuation Advocacy Association, testified in support of the bill.
02:13 PM -- Marsha Waters, director of the Division of Real Estate within the Department of Regulatory Agencies, testified in support of the bill. She gave some background information on AMCs, including what they do and the number of complaints the department receives regarding AMCs. Ms. Waters responded to questions from the committee.
02:31 PM -- Lisa Desmarais, representing the Colorado Coalition of Appraisers, testified in support of the bill and distributed a copy of her testimony (Attachment C). Ms. Desmarais responded to questions from the committee.
02:43 PM -- Ted Leighty, representing the Colorado Association of Realtors, testified in support of the bill and distributed a packet of e-mails he has received regarding this issue (Attachment D). Mr. Leighty responded to questions from the committee.
02:58 PM -- Kim Henzfeldt, representing himself, testified on the bill. He expressed some concerns with the bill and mentioned some upcoming amendments that will help address some of those concerns. Mr. Henzfeldt responded to questions from the committee.
03:14 PM -- Matthew George, representing himself, an appraiser, testified in support of the bill and distributed a copy his testimony (Attachment E).
03:20 PM -- Lee Ormiston, representing the Northern Colorado Association of Real Estate Appraisers, testified in support of the bill.
03:22 PM -- Curt Settle, representing the Department of Local Affairs, testified on the bill. He talked about the errors and omissions insurance requirement in the bill.
03:25 PM -- Bart Bartholomeu, representing himself, testified in support of the bill.
03:26 PM -- Margaret Moxley, representing herself, distributed a copy of her testimony in lieu of testifying (Attachment F).
03:26 PM -- Jennifer Waller, representing the Colorado Bankers' Association, testified in favor of the bill. She responded to questions from the committee.
03:37 PM
Representative Liston laid the bill over for action later today.