Chapter Government Relations Bill Garber Director Government

Chapter Government Relations Bill Garber Director, Government & External Relations Scott Di. Biasio Manager, State & Industry Affairs

Government Relations • The five elements of AI’s Government Relations program at the federal level Testimony Political Grassroots GR Comments Lobbying • Chapters should have similar state government affairs programs

Testimony

Direct Lobbying

Political Action

Grassroots Advocacy

State/Chapter GR • Overview • Why is state GR important? • What is required of chapters? • What have other chapters/states already done? • What issues should we be working on? 8

State/Chapter GR Government is too big and too important to be left to politicians. ” — Chester Bowles, U. S. Diplomat and Economist • A successful program can provide tremendous benefits to appraisers in terms of reduced regulation, improved policy, and more job and revenue opportunities 9

State/Chapter GR • Regulation 8 requires each chapter to have a Government Relations Committee • Can be satisfied in several ways: • • • A single, statewide chapter with its own GR Committee; Multiple chapters in a state forming a single statewide GR Committee Participation in a statewide GR Coalition that includes AI chapters and other appraisal organizations 10

State/Chapter GR • Single, statewide chapter GR committee • North Carolina, Colorado, etc. • Multiple chapters in a state with a single GR committee • California, Florida (regional), Pennsylvania, etc. • Participation in a statewide coalition • Arizona (Co. AA), Illinois (ICAP), Texas (FACT), Utah (UAA), Washington (ACOW), etc. 11

State/Chapter GR • 2013 Case Study: Coalition of Pennsylvania Real Estate Appraisers • • • Multiple AI chapters in a state formed coalition to fight BPO encroachment legislation Each chapter made a financial commitment commensurate with size Steering Committee includes chapter Pres. and GR committee chairs Allows for effective grassroots contact with legislators from across the state Numerous meetings with legislators across the state 12

State/Chapter GR • Case Study (cont) – Lessons Learned • Leadership buy-in – chapters and chapter leaders need to be on board with the effort • Regular conference calls; periodic meetings • Controlled email communication amongst Steering Committee (Communities of Practice) • Resources (dedicated dues assessment) • Retain well-respected lobbyist with coalition chair as single point of contact 13

State/Chapter GR • Participation of all chapters allows for effective grassroots contact with legislators from across the state • Coalition Chair has become a recognized spokesperson for the AI within the state legislature • Considering bringing in other appraisal groups 14

State/Chapter GR • Outcome – Favorable to date Legislation has been tabled indefinitely to allow negotiation and potential compromise amongst all stakeholder groups 15

Issues to Watch • Green/energy efficient appraisal requirements – Examples of recently proposed legislation • Mandatory green/energy efficient CE requirements – VA, WA, NV • State conferred energy efficiency appraisal certifications – OR • Codifying appraisal methodology, dictating how appraisers would consider green/EE - OR • Mandatory use of AI addendum - NC 16

Issues to Watch • AMC Registration • First wave of state AMC legislation/regulation is nearing completion (38 states have enacted) • Several states are currently considering or under development – ID, MA, NJ, NY, SC, WI • Several states have considered “clean-up” bills to correct problems, unintended consequences, or new requirements 17

Issues to Watch • “Clean-up” provisions – many the result of AMC failures – may need to amend your law • KY - $300, 000 Recovery Fund • WA – Increased it’s surety bond to $100 K • CT, OR – Decreased from 60 to 45 days required payment to appraisers • LA – Enacted state customary fee provision 18

Issues to Watch • Two biggest issues that need to be addressed • Application of registration/oversight requirements to: • • • Appraisal companies with employee appraisers (CA, IL) or few independent contractors; and Commercial AMCs Surety bonds too low and/or don’t protect appraisers 19

Issues to Watch • BPO legislation continues to be a persistent problem – scope creep of brokers into valuation continues • NJ just enacted a very onerous BPO law that allows brokers/salespeople to do BPOs for virtually any purpose • PA is considering a draconian BPO bill • VA looking at a BPO bill for 2014 20

Pictures from… Drones Phones 21

And some fun issues… • Texas enacted legislation that makes it illegal to “capture an image using an unmanned aircraft” • Exemption for real estate brokers involved in marketing, selling, financing real property and no person is identifiable • Indiana considered an “ag-gag” bill that would have made it illegal to take photos of ag or industrial land without the written consent of the owner • Prompted by environmentalists, PETA, etc. 22

For those staying for the Annual Meeting Global Real Estate Valuation Policy Update Thursday, July 25, 2013 8 – 10 a. m. Vision Room 23

For those staying for the Annual Meeting Appraisal Institute PAC Washington and Adams Contributor Reception Wednesday, July 24, 2013 6: 30 -8: 00 PM The Rathskeller 401 E. Michigan Street Open bar & Heavy hors d'oeuvres Complimentary for current Washington ($750) & Adams Club Contributors ($500) 24

Contacts • Bill Garber, 202 -298 -5586, bgarber@appraisalinstitute. org • Scott Di. Biasio, 202 -298 -5593, sdibiasio@appraisalinstitute. org • Brian Rodgers, 202 -298 -5597, brodgers@appraisalinstitute. org 25