SB 117
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 117 (Chair, Finance Committee)(By Request - Departmental -
Labor)
Finance Economic Matters
Real Estate Appraisers and Real Estate Appraiser Trainees - Licenses and
Certificates - Experience, Renewal, and Reinstatement Requirements
This departmental bill reduces the statutory 2,000 hour minimum work experience
requirements for licensure or certification as a real estate appraiser to 1,000 hours and
1,500 hours, respectively. Existing regulations require more experience, as discussed
below. The bill also increases the period of time, from two to three years, during which an
individual may apply to the Commission of Real Estate Appraisers, Appraisal Management
Companies, and Home Inspectors for reinstatement of a license or certification under
standard processes, and establishes further processes for commission discretion in granting
reinstatements after three years. Finally, the bill removes the limitation on the number of
times a real estate appraiser trainee license may be renewed, repeals the related renewal
fee, and establishes conforming reinstatement provisions.
Fiscal Summary
State Effect: The bill does not materially affect State finances or operations, as discussed
below.
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 concurs with this assessment. (The attached assessment does not
reflect amendments to the bill.)
 Analysis
Current Law: Generally, an individual must be licensed or certified by the
State Commission of Real Estate Appraisers, Appraisal Management Companies, and
Home Inspectors in MDL before the individual may provide real estate appraisal services
or certified real estate appraisal services in the State.
Statute requires that, in addition to other requirements, an applicant for initial licensure or
certification must have completed at least 2,000 hours of real estate appraiser services as a
trainee under the supervision of a certified appraiser. However, regulations specify
requirements of 2,000 hours for licensure, 2,500 hours for residential certification, and
3,000 hours for general real estate certification, completed over a minimum of two to
two and a half years.
Appraiser licenses and certifications must be renewed every three years – initial and
renewal fees are $250 – and may be reinstated within two years of lapsing for $75.
Appraiser trainee licenses may be renewed one time within three years – the initial and
renewal fee is $150 – there is no specified process for the reinstatement of trainee licenses.
Background: Chapter 594 of 1990 established the commission (formerly the
State Commission of Real Estate Appraisers) to implement and administer a real estate
appraiser licensing and certification program that complies with federal law. Commission
authority was later expanded to include home inspectors (2001) and appraisal management
companies (2011).
State Revenues: The bill reduces special fund revenue by eliminating the appraiser trainee
license renewal fee, currently established in regulation at $150. However, the bill also
potentially increases special fund revenue by (1) reducing the threshold for licensure or
certification as a real estate appraiser, if MDL adopts regulations lowering the current
limits, and (2) increasing the likelihood of additional reinstatements. None of the changes
in the bill are particularly substantial in terms of revenue, and therefore the overall effect
on State finances is negligible.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Department of Labor; Department of Legislative
Services
SB 117/ Page 2
Fiscal Note History: First Reader - January 8, 2020
mr/mcr Third Reader - March 12, 2020
Revised - Amendment(s) - March 12, 2020
Analysis by: Stephen M. Ross Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 117/ Page 3
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Business Occupations and Professions – Real Estate Appraisers and Real
Estate Appraiser Trainees– License Renewal and Reinstatement
BILL NUMBER: SB 117
PREPARED BY: Todd Blackistone, Executive Director, Commission of real estate appraisers,
appraisal management companies, and home inspectors.
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
To the extent that appraiser trainees work in small businesses, there will be a minimally positive
impact on small businesses because the trainees will be able to stay employed, and the business
will not have to continuously train new employees.
SB 117/ Page 4


Statutes affected:
Text - First - Real Estate Appraisers and Real Estate Appraiser Trainees - Licenses and Certificates - Experience, Renewal, and Reinstatement Requirements: 16-302 Business Occupations and Professions, 16-310 Business Occupations and Professions, 16-308 Business Occupations and Professions, 16-503 Business Occupations and Professions, 16-512 Business Occupations and Professions, 16-511 Business Occupations and Professions
Text - Third - Real Estate Appraisers and Real Estate Appraiser Trainees - Licenses and Certificates - Experience, Renewal, and Reinstatement Requirements: 16-302 Business Occupations and Professions, 16-310 Business Occupations and Professions, 16-308 Business Occupations and Professions, 16-503 Business Occupations and Professions, 16-512 Business Occupations and Professions, 16-511 Business Occupations and Professions