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PA Bulletin, Doc. No. 98-669



[49 PA. CODE CH. 36]

Broker/Appraiser Fees

[28 Pa.B. 2036]

   The State Board of Certified Real Estate Appraisers (Board) proposes to amend § 36.6 (relating to fees) to read as set forth in Annex A.

   Section 36.6 sets forth a schedule of fees currently charged by the Board. The proposed amendment would add to this schedule two fees relating to the newly created certification class of broker/appraiser: an application fee of $40 and an initial certification fee of $90 (if certification occurs between July 1, 1997, and June 30, 1998) or $45 (if certification occurs between September 3, 1996, and June 30, 1997, or on or after July 1, 1998).

Background and Purpose

   The act of July 2, 1996 (P. L. 460, No. 71) (Act 71) amended section 6 of the Real Estate Appraisers Certification Act (REACA) (63 P. S. § 457.6) to establish the certification class of broker/appraiser. The broker/appraiser certification permits eligible real estate brokers to perform real estate appraisals in non-Federally related transactions after their authority to do so under the REACA expires September 3, 1998. Real estate brokers who are licensed in good standing as of September 3, 1996, and who submit qualifying applications to the Board between September 3, 1996, and September 3, 1998, are eligible for certification as broker/appraisers.

   The proposed application fee would defray (1) the identifiable costs incurred by the Board in reviewing and processing an application for broker/appraiser certification; and (2) a portion of the Board's administrative overhead.

   The proposed initial certification fee (to be prorated depending on when certification occurs during the Board's biennial renewal cycle, which begins July 1 of the odd-numbered years) would defray a portion of the Board's general operating expenses (such as, legal services, investigative activities and administrative support). These costs are not susceptible of being apportioned to a specific segment of the persons regulated by the Board and, therefore, must be borne by the entire regulated community. The same two-tiered fee is charged to newly certified persons in the Board's other certification classes (that is, general appraiser, residential appraiser, Pennsylvania evaluator).

   Rather than delay the processing of broker/appraiser applications pending regulatory approval of the proposed fees, the Board has been issuing certificates to qualified applicants throughout the 2-year application period that began September 3, 1996, and intends to bill certificateholders for the fees upon completion of final rulemaking. Prospective applicants have been given no-tice of the proposed fees and of the Board's intention to deny biennial renewal of certification to those who fail to pay the fees.

Fiscal Impact

   The Board projects that approximately 3,500 real estate brokers will apply for and be issued broker/appraiser certificates. The Board also projects that about 92% of the certificateholders will be assessed the $45 initial certification fee rather than the $90 initial certification fee because their certifications will have occurred before July 1, 1997, or after June 30, 1998. Accordingly, the Board estimates that the application fee for broker/appraiser will generate revenues of $140,000 (3,500 applications × $40) while the initial certification fee for broker/appraiser will generate revenues of $170,100 (3,220 certifications × $45 and 280 certifications × $90).

Paperwork Requirements

   The proposed fees will not create additional paperwork for the Board and the regulated community. The fees will be invoiced as part of the biennial renewal notices sent to certificateholders.

Statutory Authority

   Section 5(6) of the REACA (63 P. S. § 457.5(6)) authorizes the Board to establish fees for its operation. Section 9 of the REACA (63 P. S. § 457.9) requires the Board to fix the fees by regulation and to ensure that the revenues derived from the fees are adequate to cover the Board's expenses.

Compliance with Executive Order 1996-1

   In accordance with the requirements of Executive Order 1996-1 (relating to regulatory review and promulgation), the Board, in developing the proposed fees, solicited comments from the major trade organizations that represent the various segments of the regulated community.

Regulatory Review

   On April 17, 1998, as required by section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Board submitted copies of this notice of proposed rulemaking to the Independent Regulatory Review Commission (IRRC), the Senate Standing Committee on Consumer Protection and Professional Licensure and the House Standing Committee on Professional Licensure. The Board also provided IRRC and the Committees with copies of regulatory analysis and fee report forms prepared in compliance with Executive Order 1996-1. Copies of these forms are available to the public upon request.

   Under section 5(g) of the Regulatory Review Act, if IRRC has objections to either or both of the proposed fees, it will notify the Board within 10 days of the close of the Committees' review period, specifying the regulatory review criteria that have not been met. The Regulatory Review Act sets forth procedures that permit IRRC, the General Assembly and the Governor to review objections prior to final adoption of the fees.

Public Comment

   The Board invites interested persons to submit written comments, suggestions or objections regarding the proposed fees to Steven Wennberg, Counsel, State Board ofCertified Real Estate Appraisers, P. O. Box 2649, Harrisburg, PA 17105-2649 within 30 days following publication of this notice of proposed rulemaking in the Pennsylvania Bulletin.


   Fiscal Note: 16A-707. No fiscal impact; (8) recommends adoption.

Annex A







§ 36.6.  Fees.

   The following is the schedule of fees charged by the Board:

*      *      *      *      *

Certified Real Estate Appraisers

*      *      *      *      *

Certified Broker/Appraisers

Application fee $40
Initial certification (if certified between
July 1, 1997, and June 30, 1998)
Initial certification (if certified between
September 3, 1996, and June 30, 1997, or on
or after July 1, 1998)

Certified Pennsylvania Evaluators

*      *      *      *      *

[Pa.B. Doc. No. 98-669. Filed for public inspection May 1, 1998, 9:00 a.m.]

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