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HB 443 (BR 522) - R. Mills, D. Meade , J. Tipton

     AN ACT relating to reorganization and making an appropriation therefor.
     Establish KRS Chapter 324B and create new sections thereof to grant the Department of Professional Licensing supervision over the new Real Estate Authority; define terms, including "real property board," which means the Board of Home Inspectors, Board of Real Estate Professionals, Board of Appraisers, or Board of Auctioneers; change the name of the Real Estate Commission to the Board of Real Estate Professionals; establish the department, which is managed by a commissioner, within the Public Protection Cabinet; direct the commissioner to issue written statements indicating the specific responsibilities of each real property board, board member, and board staff; deem all administrative regulations previously promulgated by the real property boards or their predecessors as retroactively promulgated by the commissioner; authorize the commissioner to promulgate future administrative regulations relating to any real property board, but only after the relevant real property board has first adopted the administrative regulation; create the Kentucky Real Estate Authority within the Department of Professional Licensing; appoint an executive director to manage the authority; establish the authority with five members, composed of the executive director and the chair of each of the four real property boards; make the executive director the chair of the authority, who may only vote in the case of a tie; set authority member reimbursement and compensation; direct the authority to oversee the real property boards; allow the authority to hear appeals of real property board disciplinary actions; consolidate the authority, boards, and their employees at one physical location; permit the boards to submit an annual budget to the authority, requiring approval by a majority vote of the authority; empower the Public Protection Cabinet secretary to appoint all personnel of the authority and the real property boards; order the authority to hire up to four administrative coordinators to carry out the administrative functions and day-to-day operations of the real property boards; establish the responsibilities of the executive director; repeal, reenact, and amend KRS 224.10-052 and 224.10-053 as new sections of KRS Chapter 324B to replace the Office of Occupations and Professions with the Department of Professional Licensing; direct the department to assume all of the responsibilities formerly held by the office; amend KRS 198B.700, 324.010, 324A.010, and 330.020 to define "authority," "commissioner," and "department"; repeal, and reenact 198B.704, 324.281, 324A.015, and 330.050 to establish the boards of home inspectors, real estate professionals, appraisers, and auctioneers, respectively; set each board at five members and list the requirements and circumstances for membership; fix the procedures for selecting members for the boards; determine board privileges and duties; forbid the commissioner from promulgating or changing an administrative regulation relating to a board unless that board has already adopted the promulgation or change; allow appeal of a board decision to the authority; prohibit any officer or employee of the cabinet, department, or authority from attempting to influence or interfere with a board's disciplinary decision or proceeding; establish details relating to board budgets and fees; retain the agency fund account and related processes for the auctioneer board; forbid the authority from imposing a fine against a licensee without previous board approval; name circumstances that could lead to removal of a board member; set reimbursement and compensation limits for board members; permit board members and staff to attend and travel to and from board-related or industry-related meetings and events with the approval of the authority; amend KRS 198B.728, 324.200, 324A.052, and 330.130 to establish appellate rights for parties aggrieved by a board decision; amend KRS 324A.150 to define "commissioner"; amend KRS 12.020, 12.252, 164.6903, 164.6905, 164.6909, 164.6911, 164.6913, 164.6915, 164.6923, 164.6929, 198A.030, 198B.706, 198B.712, 198B.714, 198B.722, 198B.724, 286.8-990, 309.131, 309.329, 309.404, 319B.020, 319B.040, 324.020, 324.040, 324.045, 324.046, 324.080, 324.085, 324.090, 324.111, 324.112, 324.115, 324.117, 324.141, 324.142, 324.150, 324.151, 324.160, 324.170, 324.220, 324.236, 324.237, 324.238, 324.2812, 324.285, 324.286, 324.287, 324.288, 324.310, 324.312, 324.330, 324.360, 324.395, 324.400, 324.410, 324.420, 324.425, 324A.020, 324A.035, 324A.040, 324A.045, 324A.047, 324A.050, 324A.065, 324A.100, 324A.152, 324A.154, 324A.156, 324A.158, 324A.160, 324A.162, 324A.163, 329A.025, 330.060, 330.070, 330.110, 330.192, 334.170, 344.385, 433.900, 433.902, and 433.906 to conform; repeal KRS 324.2811, 324.282, 324.283, 324.284, 324A.025, and 324A.060; set initial real property board terms; forbid the board member expansions from removing the three initial appointees; allow board members serving on November 30, 2016, to serve out their terms as nonvoting ex officio members of their boards with reduced compensation; transfer active personnel serving the real property boards on November 30, 2016, to the authority; confirm Executive Orders 2016-859 and 2016-881, except as expressly modified; APPROPRIATION.


AMENDMENTS

     HCS1/FN - Delete all provisions; establish KRS Chapter 324B and create new sections thereof to grant the Department of Professional Licensing supervision over the executive director for Real Estate Professions; define terms, including "real property board," which means the Board of Home Inspectors, Real Estate Commission, Appraisers Board, or Board of Auctioneers; establish the department, which is managed by a commissioner, within the Public Protection Cabinet; appoint an executive director for Real Estate Professions, managed by the commissioner; authorize the secretary of the cabinet to appoint the executive director with prior written approval of the Governor; direct the executive director to provide government oversight of the real property boards, appoint personnel hired by the real property boards, and review and approve the budgets and expenditures of the real property boards; require the executive director to review and approve real property board administrative regulations prior to their promulgation; empower the executive director to issue a final order regarding a real property board decision as part of one continuous administrative process; require the executive director to have at least 10 years of experience in one of the professions licensed by a real property board; repeal, reenact, and amend KRS 224.10-052 and 224.10-053 as new sections of KRS Chapter 324B to replace the Office of Occupations and Professions with the Department of Professional Licensing; direct the department to assume all of the responsibilities formerly held by the office; repeal and reenact 198B.704 to create the board of home inspectors; amend 324.281, 324A.015, and 330.050 to establish the real estate commission, appraisers board, and board of auctioneers, respectively; set each board at five members and list the requirements and circumstances for membership; fix the procedures for selecting members for the boards; determine board privileges and duties; set reimbursement and compensation limits for board members; permit board members and staff to attend and travel to and from board-related or industry-related meetings and events with the approval of the executive director; amend KRS 198B.728, 324.200, 324A.052, and 330.130 to establish appellate rights for parties aggrieved by an executive director decision; amend KRS 12.020, 12.252, 164.6903, 164.6905, 164.6909, 164.6911, 164.6913, 164.6915, 164.6923, 164.6929, 309.131, 309.329, 309.404, 319B.020, 319B.040, 324A.025, 324A.060, 329A.025, 334.170, 433.900, 433.902, and 433.906 to conform; repeal KRS 324.283; set initial real property board terms; forbid the board member expansions from removing the three initial appointees; allow board members serving on November 30, 2016, to serve out their terms as nonvoting ex officio members of their boards with reduced compensation; maintain active personnel serving the real property boards on November 30, 2016; confirm Executive Order 2016-859, except as otherwise confirmed or superseded; APPROPRIATION; EMERGENCY.
     HCA1( K. Imes ) - Make title amendment.
     HFA1( D. Meade ) - Amend KRS 198B.704, 324.281, 324A.015, and 330.050 to give designated professional associations up to 60 days to submit lists of three names to the Governor for filling vacancies within the real property boards; allow the Governor to immediately appoint a qualified person of his or her choosing if the professional association fails to submit the list by 60 days after the vacancy occurs.
     HFA2/P( M. Marzian ) - Amend KRS 198B.706 to remove the standards of practice of the National Association of Home Inspectors from the list of standards of practice approved by the Kentucky Board of Home Inspectors; add the standards of practice of the International Association of Certified Home Inspectors to the board's list.
     SCS1 - Retain original provisions, except restore the Kentucky Real Estate Authority; make the executive director for real estate professions the executive director of the authority; set out the duties and powers of the executive director; authorize the executive director to approve or disapprove the administrative regulations and budgets of the real property boards; allow the executive director to serve without being currently active in a real property board profession; amend KRS 224.10-052 to grant the real estate authority, rather than the Department of Professional Licensing, direct supervision over the executive director; amend KRS 12.020 to add the authority as an entity organized within the department; amend KRS 198B.704, 324.281, 324A.015, and 330.050 to remove the “indisputable proof” standard for the Governor to reject a list of candidates provided to fill a real property board vacancy; permit a designated professional association to provide a second list of names to fill a board vacancy if the Governor rejects the first list; allow the real estate commission and board of auctioneers to promulgate administrative regulations with the approval of the executive director; establish consistent reasons to remove a board member from the home inspector, appraiser, and auctioneer boards; set the daily compensation rate for members of the real estate commission and board of auctioneers at no less than $300 per day; prevent the board of auctioneers from employing and setting salaries for staff or counsel; amend KRS 198B.706 and 324A.020 to allow the home inspector and appraiser boards to promulgate administrative regulations with the approval of the executive director; amend KRS 198B.728, 324.200, 324A.052, and 330.130 to hear appeals from the executive director’s final orders in the Circuit Court of the county containing the licensee’s principal place of business or the applicant’s residence; amend KRS 324A.060 to remove the appraiser board’s ability to employ and fix the compensation of its administrator and other employees; amend KRS 324.2811 to match the reasons for removing a member of the real estate commission with those for the other real property boards; delete noncodified language concerning placement of real property board personnel.

     Feb 16, 2017 - introduced in House
     Feb 23, 2017 - to Elections, Const. Amendments & Intergovernmental Affairs (H)
     Feb 24, 2017 - posted in committee
     Feb 27, 2017 - reported favorably, 1st reading, to Calendar with Committee Substitute and committee amendment (1-title); floor amendment (1) filed to Committee Substitute
     Feb 28, 2017 - 2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Thursday, March 2, 2017; floor amendment (2) filed to Committee Substitute
     Mar 02, 2017 - 3rd reading, passed 89-3 with Committee Substitute and floor amendments (1) and (2) and committee amendment (1-title)
     Mar 03, 2017 - received in Senate
     Mar 06, 2017 - to Veterans, Military Affairs, & Public Protection (S)
     Mar 08, 2017 - taken from Veterans, Military Affairs, & Public Protection (S); 1st reading; returned to Veterans, Military Affairs, & Public Protection (S)
     Mar 14, 2017 - reported favorably, 2nd reading, to Rules with Committee Substitute
     Mar 29, 2017 - posted for passage in the Regular Orders of the Day for Wednesday, March 29, 2017; 3rd reading, passed 28-10 with Committee Substitute
     Mar 30, 2017 - received in House; to Rules (H); posted for passage for concurrence in Senate Committee Substitute; House concurred in Senate Committee Substitute; Bill passed 61-32; enrolled, signed by Speaker of the House; enrolled, signed by President of the Senate; delivered to Governor
     Apr 11, 2017 - signed by Governor (Acts, ch. 178)