RULES AND REGULATIONS
STATE REAL ESTATE COMMISSION
[49 PA. CODE CH. 35]
Biennial Renewal Fee Increases
[35 Pa.B. 6532] The State Real Estate Commission (Commission) amends § 35.203 (relating to fees). The final-form rulemaking increases the following renewal fees:
* Biennial renewal for brokers, cemetery brokers, branch offices, rental listing referral agents, brokers of record and partners or offices for a partnership association or corporation from $84 to $126.
* Biennial renewal for cemetery companies, associate brokers, salespersons, cemetery associate brokers, cemetery salespersons or campground membership salespersons from $64 to $96.
* Annual renewal of registration of promotional property from $75 to $113.
* Annual renewal of approval of real estate education providers from $250 to $375 plus an increase from $10 to $15 for each satellite location, course or instructor.
Statutory Authority
The final-form rulemaking is authorized under section 407 of the Real Estate Licensing and Registration Act (RELRA) (63 P. S. § 455.407). It requires the Commission to increase fees by regulation to meet or exceed projected expenditures if the revenues raised by fees, fines and civil penalties are not sufficient to meet Commission expenditures.
Response to Comments
Notice of proposed rulemaking was published at 35 Pa.B. 2411 (April 23, 2005). Publication was followed by a 30-day public comment period during which the Board received two public comments: one from the Pennsylvania Association of Realtors (PAR) in support of the proposed rulemaking and one from the Realtors Association of Greater Pittsburgh (RAMP) in opposition to the proposed rulemaking. Following the close of the public comment period, the Board received a comment from the House Professional Licensure Committee (HPLC). The Independent Regulatory Review Commission (IRRC) advised that it had no comments, questions or recommendations to the proposed rulemaking. The Board did not receive any comments from the Senate Consumer Protection and Professional Licensure Committee (SCP/PLC). The following is in response to the comment submitted by the HPLC and RAMP.
The HPLC commented that the Annex delivered to the Committee was missing a comma. However, prior to its publication in the Pennsylvania Bulletin, the Legislative Reference Bureau inserted a comma. RAMP voiced its opposition to the fee increases on the grounds that the increases ''will generate significantly more money than what may be needed'' by the Commission. RAMP recommended that the Commission ''tighten'' its budget.
The Commission is required by law to support its operations from the revenue it generates from fees, fines and civil penalties. In accordance with section 407(a) of the RELRA, if the revenue raised by fees, fines and civil penalties is not sufficient to meet expenditures over a 2-year period, the Commission must increase its revenue. The Commission's current license renewal fees were established by regulation at 24 Pa.B. 2613 (May 20, 1994).
According to a presentation made to the Commission by the Bureau of Finance and Operations (BFO) at its January 25-26, 2005, meeting, without the increase, the Commission would experience a projected deficit of $30,802.97 in Fiscal Year (FY) 2004-2005 and continuing thereafter. The BFO recommended that the Commission raise fees 50% to meet or exceed projected expenditures in compliance with section 407(a) of the RELRA. Under the fee structure without amendment, the BFO estimated that at the close of FY 2004-2005, the Commission's expenses would exceed its revenues by $30,522.66. By FY 2010-2011, the BFO anticipated that the deficit would increase to $4,670,802.97.
Although the Commission continues to look at ways to streamline procedures to cut costs, the fee increases are still necessary to maintain a positive balance in the Commission account. Additionally, the fees are comparable to the renewal fees charged in surrounding states and therefore will not cause a competitive disadvantage to the Commonwealth. Accordingly, the Commission has not revised the final-form rulemaking.
Fiscal Impact
The final-form rulemaking will increase the renewal fees for brokers, cemetery brokers, branch offices, rental listing referral agents, brokers of record and partners or officers of a partnership association or corporation, cemetery companies, associate brokers, salespersons, cemetery associate brokers, cemetery salespersons, campground membership salespersons, promotional property registration, approval of real estate education providers, satellite locations, courses and instructors. The final-form rulemaking has no other fiscal impact on the private sector, the general public or political subdivisions.
Sunset Date
The RELRA requires that the Commission monitor its revenue and expenses on a fiscal year and biennial basis. Therefore, no sunset date has been assigned.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on April 23, 2005, the Commission submitted a copy of the notice of proposed rulemaking, published at 35 Pa.B. 2411, to IRRC and the Chairpersons of the HPLC and the SCP/PLC for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC, the HPLC and the SCP/PLC were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Department has considered all comments from IRRC, the HPLC, the SCP/PLC and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on October 18, 2005, the final-form rulemaking was approved by the HPLC. On November 2, 2005, the final-form rulemaking was deemed approved by the SCP/PLC. The final-form rulemaking was deemed approved by IRRC under section 5(g) of the Regulatory Review Act, effective November 2, 2005.
Public Comment
Further information may be obtained by contacting Debi Misheck, Administrator, State Real Estate Commission, at P. O. Box 2649, Harrisburg, PA 17105-2649, (717) 783-3658.
Findings
The Commission finds that:
(1) Public notice of intention to adopt the administrative amendment adopted by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) The adoption of the amendment of the Commission in the manner provided in this order is necessary and appropriate for the administration and enforcement of the authorizing statute.
Order
The Commission, acting under authorizing statute, orders that:
(a) The regulations of the Commission, 49 Pa. Code Chapter 35, are amended by amending § 35.203 to read as set forth at 35 Pa.B. 2411.
(b) The Chairperson of the Commission shall certify this order and 35 Pa.B. 2411 and deposit them with the Legislative Reference Bureau as required by law.
(c) This order shall become effective upon final-form publication in the Pennsylvania Bulletin.
BEVERLY BROOKS,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 35 Pa.B. 6398 (November 19, 2005).)
Fiscal Note: Fiscal Note 16A-5612 remains valid for the final adoption of the subject regulation.
[Pa.B. Doc. No. 05-2203. Filed for public inspection December 2, 2005, 9:00 a.m.]
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