PROPOSED RULEMAKING
STATE REAL ESTATE COMMISSION
[49 PA. CODE CH. 35]
Application Fees
[29 Pa.B. 4171] The State Real Estate Commission (Commission) proposes to amend § 35.203 (relating to fees) by revising certain application fees to read as set forth in Annex A.
A. Effective date
The amendment will be effective upon publication of the final form regulation in the Pennsylvania Bulletin.
B. Statutory Authority
The amendment is authorized under section 407(a) of the Real Estate Licensing and Registration Act (act) (63 P. S. § 455.407(a)).
C. Background and Purpose
The act requires the Commission to set fees by regulation so that revenues meet or exceed expenditures over a biennial period. General operating expenses of the Commission are funded through biennial license renewal fees. Expenses related to applications or services which are provided directly to individual licensees or applicants are excluded from general operating revenues and are fundedthrough fees in which the cost of providing the service forms the basis for the fee.
In a recent systems audit of the operations of the Commission within the Bureau of Professional and Occupational Affairs, the fees for services to licensees and applicants were analyzed to determine if the fees reflected the actual cost of providing the services. Actual cost calculations are based upon the following formula:
number of minutes to perform the function
x
pay rate for the classification of personnel performing the function
+
a proportionate share of administrative overhead.The analysis determined that the fees for the listed services do not accurately reflect the actual cost of providing those services. The costs for the following services exceed the fees charged for the services: review of qualifications for licensing examination, applications for licensure and registration, initial licensure and registration, reapplication following a first examination failure; reapplication following subsequent examination failure; certification of examination scores and experience; and fictitious and corporate name registration. The application fees for initial approval of a real estate school, change and location of a real estate school, and registration of promotional property exceeded the actual cost of providing the service. Most of the fees have not been revised since August 1992, while fees for the approval of real estate schools, certification of licensure history and registration of promotional property were adopted in March 1986. No fee is in place for reinspection of real estate offices and schools after failures of an initial inspection.
In this proposal, fees for the services identified would be adjusted to allocate costs to those who use the service or make application. The Commission would continue to apportion enforcement and operating costs to the general licensing population by means of its license renewal fee through the biennial reconciliation of revenue and expenditures.
D. Compliance with Executive Order 1996-1
In accordance with Executive Order 1996-1 (February 6, 1996), in drafting and promulgating the proposal the Commission considered the least restrictive alternative to regulate costs for services requested by licensees and applicants.
E. Fiscal Impact and Paperwork Requirements
The proposed amendment will have no adverse fiscal impact on the Commonwealth or its political subdivisions. The fees will have a modest fiscal impact on those members of the private sector who apply for services from the Commission. The amendment will impose no additional paperwork requirements upon the Commonwealth, political subdivisions or the private sector.
F. Sunset Date
The Commission continuously monitors the cost effectiveness of its regulations. Therefore, no sunset date has been assigned.
G. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on July 28, 1999, the Commission submitted a copy of this proposed amendment to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Professional Licensure Committee and the Senate Consumer Protection and Professional Licensure Committee. In addition to submitting the regulation, the Commission has provided IRRC and the Committees with a copy of a detailed regulatory analysis form prepared by the Commission in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of this material is available to the public upon request.
If IRRC has objections to any portion of the proposed amendment, it will notify the Commission within 10 days after the expiration of the Committee review period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the regulation, by the Commission, the General Assembly and the Governor of objections raised.
H. Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding the proposed amendment to Deborah A. Sopko, Administrative Assistant, State Real Estate Commission, P. O. Box 2649, Harrisburg, PA 17105-2649, within 30 days of publication of this proposed rulemaking. Please reference No. 16A-566 (Application Fees), when submitting comments.
RITA HALVERSON,
ChairpersonFiscal Note: 16A-566. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND
VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND
OCCUPATIONAL AFFAIRS
CHAPTER 35. STATE REAL ESTATE COMMISSION
APPLICATION FEES § 35.203. Fees.
The following fees are charged by the Commission:
* * * * *
Review of qualifications of candidate for broker or cemetery broker licensing examination $[25] 40 Application for licensure of: (i) Broker, cemetery broker or rental listing referral agent $[55] 75 (ii) Branch office $[50] 65 (iii) Associate broker, salesperson, cemetery associate broker, builder-owner salesperson, time-share salesperson, camp- ground membership salesperson, or broker of record, partner or officer for a partnership, association or corporation $[20] 25 (iv) Cemetery salesperson $[15] 20 Application for registration of cemetery company $[20] 25 Initial licensure for broker, cemetery broker, branch office, rental listing referral agent, or broker of record, partner or officer for a partnership, association or corporation: (i) If issued in first half of biennial period $[60] 100% of biennial renewal fee (ii) If issued in second half of biennial period $[30] 50% of biennial renewal fee Initial registration for cemetery company or initial licensure for associate broker, salesperson, cemetery associate broker, cemetery salesperson, builder-owner salesperson, time-share salesperson or campground membership salesperson: (i) If issued in first half of biennial period $[40] 100% of biennial renewal fee (ii) If issued in second half of biennial period $[20] 50% of biennial renewal fee * * * * *
Registration of promotional real estate $[250] 120 * * * * * Approval of real estate school $[325] 120 Reinspection of real estate school after first failure 65 Change of name or office location of broker, cemetery broker or rental listing referral agent $[55] 75 Reinspection after failure for change of name or office location of broker, cemetery broker or rental listing referral agent 55 * * * * *
Change of ownership or directorship of real estate school $[40] 75 Change of name [or location] of real estate school $[90] 60 Change of location of real estate school 70 Addition of satellite location [course] or instructor for real estate school 20 Addition of course for real estate school 25 * * * * * Certification of history of licensure, registration or approval $[30] 40 * * * * *
[Pa.B. Doc. No. 99-1278. Filed for public inspection August 6, 1999, 9:00 a.m.]
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