Bill Summary – FastDemocracy

SB 6
                      Department of Legislative Services
                              Maryland General Assembly
                                    2020 Session
                           FISCAL AND POLICY NOTE
                                 Third Reader
Senate Bill 6                 (Chair, Education, Health, and Environmental Affairs
                              Committee)(By Request - Departmental - Labor)
Education, Health, and Environmental Affairs                        Economic Matters
                   State Real Estate Commission - Sunset Extension
This departmental bill extends the termination date for the State Real Estate Commission
by 10 years to July 1, 2032.
                                    Fiscal Summary
State Effect: Special fund revenues and expenditures for the State Real Estate
Commission are maintained beyond FY 2022.
Local Effect: None.
Small Business Effect: The Maryland Department of Labor (MDL) has determined that
this bill has minimal or no impact on small business (attached). The Department of
Legislative Services (DLS) concurs with this assessment.
                                         Analysis
Current Law/Background: Generally, an individual must be licensed by the State Real
Estate Commission in MDL as a real estate broker, associate broker, or salesperson before
the individual may provide real estate brokerage services in the State, subject to specified
requirements for licensure and ongoing licensee behavior. The commission also
administers a guaranty fund for the purpose of reimbursing persons for actual losses due to
acts or omissions that occur in the provision of real estate brokerage services by licensees
or unlicensed employees of licensed real estate brokers. The commission has
approximately 47,000 licensees, with annual revenues of approximately $2.7 million and
annual operating expenditures of approximately $1.9 million.
Maryland Program Evaluation Act
The State Real Estate Commission is one of approximately 70 regulatory entities and
activities subject to evaluation under the Maryland Program Evaluation Act (MPEA).
Entities subject to MPEA may be evaluated by DLS only as directed by specified entities
or by legislation. Most such entities are subject to termination, including the commission,
which is scheduled to terminate July 1, 2022. Accordingly, the evaluation process is better
known as sunset review.
                               Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Department of Labor; Department of Legislative
Services
Fiscal Note History:      First Reader - January 7, 2020
an/mcr                    Third Reader - January 17, 2020
Analysis by: Stephen M. Ross                           Direct Inquiries to:
                                                       (410) 946-5510
                                                       (301) 970-5510
SB 6/ Page 2
               ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: State Real Estate Commission - Sunset Extension
BILL NUMBER:          SB6
PREPARED BY: Michael Kasnic
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
       _X_     WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
               BUSINESS
                              OR
               WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
               BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
There are no changes to the economic impacts for small businesses resulting from the
continuation of the Real Estate Commission.
SB 6/ Page 3
Statutes affected: 
Text - First - State Real Estate Commission - Sunset Extension: 17-702 Business Occupations and Professions
Text - Third - State Real Estate Commission - Sunset Extension: 17-702 Business Occupations and Professions