February 28, 2003





SENATE BILL No. 433

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DIGEST OF SB 433 (Updated February 25, 2003 2:01 PM - DI 106)



Citations Affected: IC 25-34.1.

Synopsis: Appraisal fraud funding. Requires the real estate appraiser licensure and certification board to recommend a new fee to be imposed upon licensed or certified appraisers to fund the investigation of real estate or appraisal fraud. Establishes the investigative fund, to be jointly administered by the attorney general and the professional licensing board.

Effective: July 1, 2003.





Merritt




    January 21, 2003, read first time and referred to Committee on Criminal, Civil and Public Policy.
    February 27, 2003, amended, reported favorably _ Do Pass.






February 28, 2003

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 433



    A BILL FOR AN ACT to amend the Indiana Code concerning professions and occupations and to make an appropriation.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 25-34.1-2-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. (a) Except as provided in subsection (b), all funds collected under this article shall, at the end of each month, be reported to the auditor of state and deposited with the treasurer of state for deposit in the general fund. All expenses incurred in the administration of this article shall be paid from the general fund.
     (b) The commission shall establish a fee for real estate brokers and salespersons to provide funds for the purpose of investigating and taking enforcement action against real estate fraud and real estate appraisal fraud under this article. All funds collected under this subsection shall be deposited in the investigative fund established by IC 25-34.1-8-7.5.
    SECTION 2. IC 25-34.1-3-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) The commission shall establish fees under IC 25-1-8-2 to implement section 8 of this chapter and to provide funding for the investigative fund

established by IC 25-34.1-8-7.5.
    (b) Notwithstanding IC 25-1-8-2, a fee described in subsection (a) may not be less than fifty dollars ($50).
    (c) The board may collect a fee required by federal law and transmit the fees to the federal government as required by federal law.
    (d) A fee described in subsection (a) is in addition to any fees required by federal law.
    SECTION 3. IC 25-34.1-8-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. The board shall submit recommendations to the commission concerning the following:
        (1) Implementation and operation of the real estate appraiser licensure and certification program under IC 25-34.1-3-8.
        (2) Rules governing real estate appraisers licensed and certified under IC 25-34.1-3-8.
         (3) Establishing a fee in an amount necessary to fund the investigative fund established by section 7.5 of this chapter.
         (4) Rules governing the administration of the investigative fund established by section 7.5 of this chapter.
    SECTION 4. IC 25-34.1-8-7.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7.5. (a) The investigative fund is established to provide funds for investigating and taking enforcement action against real estate fraud. The fund shall be administered by the attorney general and the professional licensing agency.
    (b) The expenses of administering the fund shall be paid from the money in the fund. The fund consists of money from a fee imposed upon licensed or certified appraisers and real estate brokers and salespersons under IC 25-34.1-2-6 and IC 25-34.1-3-9.
    (c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested.
    (d) Money in the fund at the end of a state fiscal year does not revert to the state general fund. If the total amount in the investigative fund exceeds five hundred thousand dollars ($500,000) at the end of a state fiscal year after payment of all claims and expenses, the amount that exceeds five hundred thousand dollars ($500,000) reverts to the state general fund.
    (e) Money in the fund is continually appropriated for use by the attorney general and the professional licensing agency to conduct investigations and take enforcement action against real estate and appraisal fraud under this article. The attorney general and the

professional licensing agency shall divide the money in the fund equally.
    SECTION 5. IC 25-34.1-8-15 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 15. The office of the attorney general and the professional licensing agency may use the investigative fund established by section 7.5 of this chapter to hire investigators and other employees to investigate and prosecute real estate fraud and real estate appraisal fraud.