BILL SUMMARY for HB09-1183
HOUSE COMMITTEE ON JUDICIARY
|Votes: View--> ||Action Taken: |
|Refer House Bill 09-1183 to the Committee of the W||PASS|
03:48 PM -- House Bill 09-1183
Representative Vaad, prime sponsor, presented House Bill 09-1183 concerning violations of laws related to real estate appraisers. The bill increases the penalty for violations of law related to real estate appraisals. Penalties for a first offense are increased from a class 3 misdemeanor to a class 1 misdemeanor. Under current law, penalties for second offenses that occur within 3 years of an original conviction are a class 1 misdemeanor. This bill increases that period from 3 to 5 years. The penalties for second offenses that occur within 5 years of the original conviction are increased from a class 1 misdemeanor to a class 5 felony. He expressed his opinion that judges be somehow encouraged to assess a fine rather than a sentence to jail or prison.
03:54 PM -- Tom Raynes, Colorado AGO, spoke in support of the bill. Mr. Raynes discussed a fairly recent increase in criminal acts of fraud related to real estate transactions. He explained that these cases are not usually prosecuted because they are complicated and with the mild nature of the penalty, most prosecutors are not willing to take the trouble. He indicated that there is a certain weighing of risk by dishonest real estate appraisers. He believes it makes sense to increase the penalty in order to act as a disincentive to such appraisers. He responded to questions from the committee about various real estate fraud schemes that require a faulty appraisal in order to proceed. He discussed Representative Vaad's desire to encourage a monetary penalty rather than a sentence to incarceration.
04:07 PM -- Zachary Urban, Colorado Department of Regulatory Agencies, Division of Real Estate, spoke in support of the bill. Mr. Urban discussed the revocation of real estate appraisal licenses and the cost to the state of inflated real estate appraisals in the form of lost tax revenue.
The committee discussed the potential problems with the bill casting too wide a net and catching minor violations. Representative Vaad wrapped up his presentation of the bill and asked for a favorable recommendation.
|TIME: || 04:17:33 PM|
|MOTION:||Refer House Bill 09-1183 to the Committee of the Whole with a favorable recommendation. The motion passed on a vote of 11-0.|
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS