Committee advances bill to re-establish independent appraiser board and move toward mandatory licensure for some appraisals
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Summary
House Bill 3 55, as amended, would re-establish an independent board for real property appraisers, permit low-risk evaluations consistent with federal guidelines, and transition toward mandatory licensure for certain transactions; supporters said the change improves consumer protection while members asked about administrative costs.
The Banking and Insurance Committee voted to report House Bill 3 55 favorably after sponsors described three primary goals: reinstate an independent appraiser board, clarify the role of lower-risk evaluations and move Kentucky toward mandatory licensure for appraisers in more transactions.
Representative Sean McPherson said the substitute is largely a cleanup that restores an independent board that previously helped provide education and oversight to the appraisal profession. "The sub does basically nothing I don't think that the intended bill didn't do. It just cleans up wording," McPherson said.
Witnesses from the insurance industry and appraisal community urged the committee to approve mandatory licensure in some contexts. Brian Reynolds, a certified general appraiser and president of the Kentucky Association of Appraisers, said mandatory licensure would bring Kentucky in line with neighboring states and provide consumer protections. Insurance representatives added an exclusion for claims adjusters who already are licensed under insurance law.
Members asked about the cost of hiring an executive director and ongoing board expenses. Sponsors said the fiscal impact was indeterminable at the time because the number of board members and fee structure would affect revenues, but they noted the board would have authority to set fees by regulation to sustain operations.
The committee adopted a substitute and reported the bill favorably to the House floor for further action.
