Colorado Legislative Council Staff
NO FISCAL IMPACT
January 11, 1999
Senate Business Affairs
Will Meyer (866-4976)
TITLE: CONCERNING THE REGULATION OF REAL ESTATE PROFESSIONALS, AND, IN CONNECTION THEREWITH, EXTENDING THE REAL ESTATE DIVISION AND THE REAL ESTATE COMMISSION.
Summary of Assessment
The bill continues the Division of Real Estate, Department of Regulatory Agencies, and the Real Estate Commission for an additional ten years until July 1, 2009. The bill also creates a new category of timeshare salesperson and calls for the division to study the feasibility of the division taking over supervision of private real estate occupational schools from the Department of Higher Education and permanently exempting right-of-way agents from licensure as real estate brokers. The bill increases the maximum recovery fund payouts from $20,000 to $50,000 per transaction and from $60,000 to $150,000 per licensee. The bill would become effective July 1, 1999.
The continuation of the division and the commission would not result in an increase or decrease in base state revenues or expenditures. The division is appropriated $3,449,895 (including Pots) and 38.0 FTE for FY 1998/99. Currently, the division licenses time share salespersons either as real estate brokers or salespersons. This new category of licensure will not result in a significant increase in the number of licensees or revenues. The studies required in the bill will not have a significant impact on the workload of the division staff.
The recovery fund is maintained by the division to cover losses to the public resulting from fraud, theft, or other illegal activities of real estate licensees resulting in financial loss to the public. The fund is financed through licensee disciplinary fines, penalty fees, and interest and requires no assessment against the licensees. The increase in the maximum fund payouts will eventually result in increased payment from the fund, but it is not possible to estimate the amount of increased payouts. Currently the division is appropriated $250,000 for the fund. The bill would not impact any other state agency or unit of local government. Therefore, this bill is assessed as having no fiscal impact.