SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Board of Certified Real Estate Appraisers, June 10, 2013

Purpose of the Report

In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the Board of Certified Real Estate Appraisers’ (board or BCREA) activities. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, under AS 08.03.010(c)(19), the board will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations.

Report Conclusions

We conclude that BCREA’s termination date should be extended. Regulating and licensing real estate appraisers benefits the public’s interest. The board provides reasonable assurance that individuals licensed as real estate appraisers are qualified. We recommend the board’s termination date be extended only four years to June 30, 2018, which is half of the maximum allowed in state law. The reduced extension is in recognition of the increase in the board’s federally mandated responsibilities. In the upcoming years, federal law requires the board to expand its regulation responsibilities to include appraisal management companies.

The Division of Corporations, Business and Professional Licensing (DCBPL) materially addressed the prior sunset audit recommendations; however, additional deficiencies were noted. This audit makes two recommendations to improve the administrative support to the board.

Findings and Recommendations

  1. DCBPL’s director should continue efforts to improve the investigative case management system’s integrity and confidentiality.
  2. DCBPL’s director should take steps to improve administrative support to BCREA.