FEBRUARY 22, 2000

LEGISLATIVE ALERT
YOUR URGENT ACTION NEEDED THIS MORNING
CALL AND E-MAIL YOUR REPRESENTATIVES RIGHT NOW - - KEEP SSB 5924 ON TRACK!
- Real Estate Appraiser Commission Bill -
HOUSE FINANCIAL INSTITUTIONS AND INSURANCE COMMITTEE
Possible Executive Session
TODAY, TUESDAY, FEBRUARY 22, AT 1:30 P.M., HOUSE HEARING ROOM "D"

The Co-Chairs have scheduled Possible Executive Session at this afternoon's meeting to act on SSB 5924, following the Public Hearing this past Friday, February 18.  Please call and e-mail your representatives about the importance of establishing the Real Estate Appraiser Commission (REAC) so that the public and the profession will be protected from the possibility of irrational rule making through the mandated recognition of the input from certified and licensed appraisers.  Under the current Real Estate Appraiser Act (18.140 RCW), the Director of Licensing is required to only consider, but may completely disregard, the recommendations of the current Real Estate Appraiser Advisory Committee (REAAC).  This under-protects the public, and undermines the profession.

Concern has been expressed that appraisers' greater participation in the rule-making process of our regulation will decrease the protection of the public because the proverbial "fox will be watching the hen coop."  Nothing is further from the truth.  Appraisers only seek a reasonable state of "check and balance" not unlike that of similar regulated businesses and professions in Washington State.

If your Representative is a member of the House Committee on Financial Institutions and Insurance (FII), your IMMEDIATE ACTION IS ESSENTIAL.  Appraisers as a body, represented by ACOW, can not succeed without your vital participation.

The FII Co-Chairs are Representatives Brad Benson (R-6, Spokane (Spokane)) and Brian Hatfield (D-18, Long Beach/Raymond (Pacific and Wahkiakum, plus parts of Cowlitz and Grays Harbor)).  The Vice Chairs are Representatives Roger Bush (R-2, Bethel (Pierce)) and Jim McIntire (D-46, northeast Seattle (King)).

House committees in the Fifty-sixth Legislature (1999-2000) have Co-Chairs, two Vice Chairs and an equal number of members representing both of the two major parties because forty-nine Democrats and forty-nine Republicans were elected as members to their respective caucus in November 1998.  This tie and the resultant power sharing means that controversy must be avoided if a bill is to move forward.

Representatives Kelly Barleen (R -10, Langley (Island, plus northwest Snohomish and southwest Skagit)), Jack Cairnes (R-47, Covington (east King)), Richard DeBolt (R-20, Chehalis (portions of Lewis, south Pierce and Thurston)), Karen Keiser (D-33, Des Moines (King)), Dave Quall (D-40, Mount Vernon (San Juan, most of Skagit and southern Whatcom)), Sharon Tomiko Santos (D-37, (southeast Seattle (King)), Brian Sullivan (D-29, south Tacoma (Pierce)), and Gigi Talcott (R-28, University Park (Pierce)) round out the twelve-member Financial Institutions and Insurance Committee.  Substitute Senate Bill (SSB) 5924 is the first on today's agenda. 

ACOW has learned that Rep. Jim McIntire from Seattle's 46th District is among those with concerns.  As the Co-vice chair of FII, his opinion on this bill will carry a lot of weight.  Apparently he is concerned that the profession could abuse its power to regulate itself. This is not the case - its rule-making authority would be shared with the Director of Licensing, providing appropriate safeguards for the public interest.  Drop an e-mail to mcintire_ji@leg.wa.gov or call his office at 360-786-7886.

When contacting your Representative, identify yourself as a constituent and professional real estate appraiser. Ask her/his support of SSB 5924, Establishing the Real Estate Appraiser Commission.  Assure her/him that the joint rule-making authority shared by the proposed commission and the director will adequately safeguard the public interest, and tell him that appraisers should be regulated in a manner equivalent to other professionals by a commission with significant authority, not a mere advisory panel.  Your efforts are sincerely appreciated.

As you probably know, ACOW has been working during the past several years for passage of a bill that would upgrade the REAAC to a Real Estate Appraiser Commission.  The difference is this: the Advisory Committee advises the Director of Licensing but has absolutely no authority.  The Commission would have joint rule-making authority with the Director.  This is similar to the regulatory set-up for real estate brokers and salespersons, mortgage brokers, and other professions.

FII also meets on this Friday, February 25, the last day for committee reports to be read into the record from the opposite house.  Then there is only one week, until cutoff on 5:00 p.m. on Friday, March 3, for all bills to get through the opposite houses' rules committee and floor action. (Ulcer time for ACOW and for T.K. Bentler, its lobbyist, and all for bill proponents and their lobbyists.)

Our goal is a struggle in the House because of both its 49-49 split, and the shortness of time.  Every member is being cautious.  With SSB 5924 scheduled for FII executive session today (Tuesday) at 1:30 and if we can get a "do pass" report today, we have a more reasonable chance of making it.

SSB 5924 transfers appraiser input for the operation of the program to a "real estate appraiser commission" appointed by the Governor, replacing the "advisory committee" now appointed by the Director of Licensing.  It sets criteria for the composition of the commission to assure that some members come from both Eastern and Western Washington, that certified general, certified residential and licensed appraisers are represented along with a financial institutions and a public member, and establishes the responsibilities of the commissioners concerning program operation and their relationship with the Director of Licensing.  No such system of fairness criteria exists today.

SSB 5924 (successor to last and this year's SB 5924) is the result of more than two weeks of negotiations following the Senate CTHF Committee's public hearing between Jim Irish and DOL, assisted by ACOW Lobbyist T. K. Bentler (who simultaneously has been negotiating with the banking industry lobbyists).  It was then reported out the Senate CTHF Committee with a "do pass" recommendation.  SSB 5924 preserves the ACOW goal of creating the Real Estate Appraiser Commission (a Class III body with rule-making powers) to replace the current Real Estate Appraiser Advisory Committee (a Class I body with only advisory, no rule-making, authority).  DOL testified in favor of SSB 5924 in its present form.

The goal of SSB 5924 is to bring parity to the way that the appraisal profession is regulated as compared to similar and related professions. FIRREA Section 901 defines the term "institution- affiliated party" to include "any independent contractor (including any attorney, appraiser, or accountant) .  .   .".  Neither Attorneys nor accountants, nor real estate brokers and salespersons, nor mortgage brokers are represented in their regulatory process by a body so powerless by statute as the Real Estate Appraiser Advisory Committee (REAAC). 

18.140 RCW presently requires a Director only "To consider recommendations" from the REAAC, which then can be ignored.  There is no system of checks and balances. The Director appoints, assists and considers.  REAAC members are without recourse.  If we can be jailed with others, we are entitled to equal representation.

Please contact the YOUR REPRESENTATIVES, FII Committee members, and then the members of the Rules Committee once the bill is reported out by FII. House committees have Co-Chairs and two Vice Chairs representing both of the two major parties because forty-nine Democrats and forty-nine Republicans were elected as members to their respective caucus in November 1998.  This tie and the resultant power sharing means that controversy must be avoided if a bill is to move forward.

THIS IS WHERE EACH APPRAISER COUNTS.  IT IS ESSENTIAL THAT EACH OF US CALL OUR TWO REPRESENTATIVES, OR SEND AN E-MAIL, OR SEND A MESSAGE VIA THE LEGISLATIVE HOTLINE AT 1-800-562-6000 RIGHT NOW.  Send a separate message for each of bill, and reference it by the bill number.  Your message should ask that each of your Representatives support the bill in the their party caucus and in floor action, and that he or she "Pull the bill" in on the Rules Committee (if a member).  The helpful hotline staff will give you direct office phone numbers, e-mail addresses and take a hotline message if you give them your District Number.  Bill and member information is on the web at www.leg.wa.gov also.

At Friday's Public Hearing, testimony in favor of SSB 5924 was given by Jim Tesso, Barry Wilson and Jim Irish for ACOW, and by Cleotis Borner for DOL.  Scott Noble, King County Assessor and Legislative Committee Chair for the Washington State Association of County Assessors testified to request an amendment "On page 7, line 2, after 'policy.' and before 'One' insert 'One member shall be an individual engaged in mass appraisal whose duties are concerned with ad valorem appraisal management and policy'."

FII members were made aware by the SSB 5924 proponents that Department of Revenue maintains a separate "accreditation" program for county assessment personnel (who are exempt from 18.140 RCW and government employees performing official duties).  The members had varying views on this request and took it under advisement for possible discussion in the executive session.  Subsequent conversations have clarified some aspects of the proposed amendment.

SB 6642 - PREVENTING REGISTERED SEX OFFENDERS AS APPRAISERS CORRECTION from earlier ACOW Bulletins - Jim Tesso testified in the Senate CTHF, and again will testify this evening before the House Commerce and Labor (CL) Committee, on behalf of ACOW rather than as Chair of the Real Estate Appraiser Advisory Committee (REAAC).  Cleotis is expected to testify for DOL tonight.  The Public Hearing is at 6:00 p.m. in House Hearing Room "B" in the John L. O'Brien House Office Building.  SB 6642 is the fourth of four items on the agenda (after bills relating to motor vehicle dealers, cosmetologists and geologists).

SB 6642 establishes the basis for the non-issuance of an appraisal certificate or license to certain registered sex offenders in accordance with the provisions of Washington's statutes on criminal rehabilitation (RCW 9.96A.020), and sex offenders and kidnapping offenders registration (RCW 9A.44.130).  RCW 18.140.160 (5) can not prevent DOL's approving an application on the grounds of moral turpitude beyond the provisions of other Washington laws. 

SB 6642 is a sequel to 1999 SB 5253 which was broadly sponsored at the request of DOL with the support of WAR, gained unanimous passage, and was enacted by Governor Locke as Chapter 46 of 1999, to prevent a registered sex offender from holding a real estate license.  Both bills affect only the more serious classes of registered sex offenders, and are subject to the provisions of other statutes by reference.  Support from appraisers will lead to CL giving a "do pass" report, encourage the Rules Committee to send SB 6642 out for third reading and floor action, so call your Senator to ask for that support.

 MESSAGES ARE A MUST

Contacting your own Senators and Representatives is essential.  Phone and FAX numbers, E-mail and Post Office Addressees, bill copies and any other information which you need can be found by calling the Legislative Hot Line at 1-800-562-6000.  The illustrative model e-mail address for "Your Favorite Legislator" is legislator_yo@leg.wa.gov.  Use the WEB at www.leg.wa.gov for LEGInfo, or access by FTP at ftp.leg.wa.gov or by E-mail at ftpmail@leg.wa.gov.  

APPRAISAL NEWS IN WASHINGTON STATE

See ACOW on the Web at www.acow-wa.org for government and public relations related to appraising.  Request ACOW E-mail from bf777@scn.org until a listserve is implemented.  Sending fewer faxes will help to stretch ACOW's resources.  No part of this effort is too small to matter.  

Go to http://www.onelist.com/subscribe.cgi/Appraisers-WA to subscribe to newsgroup postings for appraisal business matters of interest in Washington State.  Stay abreast of who has or needs what in comparables.  See what's hot, and what's rot.

PLEASE HELP OUR PROFESSION NOW!

GET INVOLVED, ACOW NEEDS YOU!