VOLUME 43, ISSUE 15
ISSUE DATE: AUGUST 1, 2011
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
STATE BOARD OF REAL ESTATE APPRAISERS
Proposed Amendment: N.J.A.C. 13:40A-7.1
Modification of Annual Registry Fee
Authorized By: State Board of Real Estate Appraisers, Charles Kirk, Executive Director.
Authority: N.J.S.A. 45:14F-8.
Calendar Reference: See Summary below for explanation of exception to the calendar requirement.
Proposal Number: PRN 2011-158.
Submit written comments by September 30, 2011 to:
Charles Kirk, Executive Director
State Board of Real Estate Appraisers
P.O. Box 45032
124 Halsey Street
Newark, New Jersey 07101
The agency proposal follows:
On October 13, 2010, the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council, approved a modification of the annual national Registry fee from $ 25.00 to $ 40.00 under the authority of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub.L. 111-203, (the Dodd-Frank Reform Act). The ASC raised the National Registry fee to support its supervisory activities, including additional authority and responsibility under the Dodd-Frank Reform Act.
As addressed in ASC Policy Statement 8, National Registry of State Certified and Licensed Appraisers, Title XI of the Financial Institutions Reform, Recovery and Enforcement Act, as amended, require states to transmit to the ASC, a roster listing individuals who have received state certification or license to perform appraisals and a Registry fee from those individuals. The Registry fee and roster requirements apply to all individuals who receive state certifications or licenses originally or by reciprocity. In addition, a Registry fee is due to the ASC from each state in which an appraiser is certified or licensed.
To provide a reasonable transition period for the states to implement the modification of the Registry fee, the increase will take effect on January 1, 2012. As a result, on or after January 1, 2012, for all new appraiser credentials and all new renewals of existing credentials, states are required to collect and transmit to the ASC the modified annual Registry fee of $ 40.00 in order for a credential to be reflected on the National Registry.
Pursuant to this mandate, the Board is proposing an amendment to N.J.A.C. 13:40A-7.1(a), the fee schedule, so that its rules are in compliance with Title XI and ASC Policy Statement 8. It is proposed that the biennial Federal surcharge fee be increased from $ 50.00 to $ 80.00.
The Board has determined that the comment period for this notice of proposal is 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this notice is excepted from the rulemaking calendar requirement.
The proposed amendment to N.J.A.C. 13:40A-7.1 reflects a mandatory fee increase imposed by Federal law for all State licensed and certified appraisers. As the fee increase will support the Appraisal Subcommittee's maintenance of the National Registry, the fee will in turn promote the national interest in ensuring that only State licensed or certified appraisers are deemed eligible to perform appraisals in connection with Federally related transactions.
The proposed rule amendment will increase the costs to appraisers who must pay the increased national registry fee if they are certified or licensed. The Board anticipates that the proposed rule amendment will not impose any new or additional costs upon consumers. The Board believes that the payment of the increased fee is necessary for a licensee's credentials to be reflected in the National Registry and offsets any economic impact that may be experienced by the licensee.
Federal Standards Statement
A Federal standards analysis is not required because the proposed rule amendment does not exceed the standards and requirements set forth under Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, 12 U.S.C. §§331 et seq.
The Board does not believe that the proposed rule amendment will result in the creation or loss of any jobs in the State.
Agriculture Industry Impact
The Board does not believe that the proposed rule amendment will have any impact on the agriculture industry in the State.
Regulatory Flexibility Analysis
If for the purposes of the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., the approximately 3,119 New Jersey licensed and certified real estate appraisers and are considered "small businesses," then the following analysis applies. There are no reporting or recordkeeping requirements as a result of the proposed amendment. The proposed fee increase will impose additional costs associated with compliance on the licensees. Licensees will not require professional services to comply with the proposed amendment.
Smart Growth Impact
The Board does not believe that the proposed rule amendment will have any impact upon smart growth or upon the implementation of the State Development and Redevelopment Plan.
Housing Affordability Impact Analysis
The proposed rule amendment will have an insignificant impact on affordable housing in New Jersey and there is an extreme unlikelihood that the rule would evoke a change in the average costs associated with housing because the proposed rule amendment concerns an increase of the fee for real estate appraisers in compliance with changes in Federal law.
Smart Growth Development Impact Analysis
The proposed rule amendment will have an insignificant impact on smart growth and there is an extreme unlikelihood that the rule would evoke a change in housing production in Planning Areas 1 or 2, or with designated centers, under the State Development and Redevelopment Plan in New Jersey because the proposed rule amendment concerns an increase of the fee for real estate appraisers in compliance with changes in Federal law.
Full text of the proposal follows (addition indicated in boldface thus; deletion indicated in brackets [thus]):
SUBCHAPTER 7. GENERAL PROVISIONS
13:40A-7.1 Fee schedule
(a) Charges for credentialing, certification, licensure and other services are as follows:
1.-17. (No change.)
18. Federal surcharge, biennial. . . . . . . . . . . . . . . . . . . . .$[50.00]80.00
19. (No change.)