HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 491 Florida Real Estate Appraisal Board
SPONSOR(S): Regulatory Reform Subcommittee, Melo and others
TIED BILLS: IDEN./SIM. BILLS: SB 346
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 15 Y, 0 N, As CS Thompson Anstead
2) Commerce Committee 17 Y, 0 N Thompson Hamon
SUMMARY ANALYSIS
The Florida Real Estate Appraisal Board (Board) within the Department of Business and Professional
Regulation (DBPR) regulates real estate appraisers under of ch. 475, part II, F.S. The Board, through its rules,
is authorized to:
Regulate the issuance of licenses, certifications, registrations, and permits;
Discipline appraisers;
Establish qualifications for licenses, certifications, registrations, and permits;
Regulate approved courses;
Establish standards for real estate appraisals; and
Establish standards for and regulate supervisory appraisers.
The Board consists of nine members, each appointed by the Governor and subject to confirmation by the
Senate. The Governor may remove any Board member for cause. The membership includes:
Four members who are real estate appraisers who have been engaged in the general practice of
appraising real property in this state for at least 5 years immediately preceding appointment;
Two members who represent the appraisal management industry;
One member who represents organizations that use appraisals for the purpose of eminent domain
proceedings, financial transactions, or mortgage insurance; and
Two members who represent the general public and are not connected in any way with the practice of
real estate appraisal.
The bill revises the membership of the Board as follows:
Decreases the number of Board members who represent the appraisal management industry from two
members to one.
Increases the number of Board members who represent the general public from two members to three.
The bill does not appear to have a fiscal impact on state or local government.
The effective date of the PCS is November 1, 2021.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0491b.COM
DATE: 4/14/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
The Florida Real Estate Appraisal Board (Board)1 within the Department of Business and Professional
Regulation (DBPR) regulates real estate appraisers under of ch. 475, part II, F.S. The Board, through
its rules, is authorized to:
Regulate the issuance of licenses, certifications, registrations, and permits;
Discipline appraisers;
Establish qualifications for licenses, certifications, registrations, and permits;
Regulate approved courses;
Establish standards for real estate appraisals; and
Establish standards for and regulate supervisory appraisers.2
According to the most recent data, there are 6,655 active certified real estate appraisers,3 and 219
active real estate appraisal management companies, in the state.4
The Board consists of nine members, each appointed by the Governor and subject to confirmation by
the Senate. The Governor may remove any Board member for cause. The membership includes:
Four members who are real estate appraisers who have been engaged in the general practice
of appraising real property in this state for at least 5 years immediately preceding appointment;
Two members who represent the appraisal management industry;
One member who represents organizations that use appraisals for the purpose of eminent
domain proceedings, financial transactions, or mortgage insurance; and
Two members who represent the general public and are not connected in any way with the
practice of real estate appraisal.5
Members of the Board are appointed for four-year terms, and may not be appointed for more than two
consecutive terms. The headquarters of the Board is in Orlando, Florida. The Board must meet at least
once each calendar quarter to conduct its business. Members must elect a chairperson at the first
meeting each year.6 Each member of the Board is entitled to per diem and travel expenses as set by
legislative appropriation for each day that the member engages in the business of the Board.7
There is currently one vacancy on the Board.8 There are two members with current appointments
expiring October 31, 2021 and six continue to hold office through the expiration of their term, including
both public members and both appraisal management industry representatives.9
1
The Florida Real Estate Commission regulates real estate agents, associates, and schools, has 293,012 active licensees, and consists
of seven members.
2
S. 475.613(2), F.S.
3
Department of Business and Professional Regulation, Annual Report, Divisions of Professions, Certified Public
Accounting, Real Estate, and Regulation, Fiscal Year 2018-2019,
http://www.myfloridalicense.com/DBPR/os/documents/DivisionAnnualReport_FY1819.pdf , at page 19 (last visited
Mar. 17, 2021).
4
Email from Colton Madill, Deputy Legislative Affairs Director, Department of Business and Professional Regulation, RE: Real
Estate Appraisal Management Companies, (Mar. 22, 2021).
5
S. 475.613(1), F.S.
6
Id.
7
Id.
8
Department of Business and Professional Regulation, REAL ESTATE APPRAISAL – BOARD INFORMATION
http://www.myfloridalicense.com/DBPR/real-estate-appraisal-board/board-information/#1509044906969-7080e654-a662 (last visited
March 8, 2021).
9
Id.
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In 2010, the membership of the Board was increased from seven members to nine members with the
addition of two members representing the appraisal management industry, based on the state’s
adoption of the policy to include the licensing and regulation of appraisal management companies with
real estate appraisers. Appraisal management companies are business entities that administer
networks of independent appraisers to fulfill real estate appraisal assignments on behalf of lenders and
were not regulated in Florida before 2010.10
Proposed Changes
The bill revises the membership of the Board as follows:
Decreases the number of Board members who represent the appraisal management industry
from two members to one.
Increases the number of Board members who represent the general public from two members
to three.
B. SECTION DIRECTORY:
Section 1: Amends s. 475.613, F.S., relating to the Florida Real Estate Appraisal Board.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
10
Chapter 2010-84, Laws of Fla.
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DATE: 4/14/2021
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to take an action
requiring the expenditure of funds, reduce the authority that counties or municipalities have to raise
revenue in the aggregate, nor reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None
B. RULE-MAKING AUTHORITY:
The bill does not appear to create a need for rulemaking or rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 24, 2021, the Regulatory Reform Subcommittee adopted a proposed committee substitute
(PCS) and reported the bill favorably as a committee substitute. The PCS differed from HB 491 in the
following ways:
Increased the number of Board members who are members of the general public from two
members to three.
Decreased the number of Board members who represent the appraisal management industry from
two members to one.
This analysis is drafted to the committee substitute as passed by the Regulatory Reform Subcommittee.
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DATE: 4/14/2021
Statutes affected: H 491 Filed: 475.613
H 491 c1: 475.613