Senate

Bill 1318
2016 Freedom Index Score (-4)
Analyst: Wayne Hoffman
Date: February 22, 2016

ANALYSTS NOTE: Senate bill 1318 would create a new government regulatory oversight process for appraisal
management companies. The regulation of such entities is a requirement under Dodd-Frank. Under the
federal government's requirements, states are to enact legislation regulating appraisal management
companies. It should be noted that states are not required to take any action prior to December 2018, and
even still, states are given some leeway in the implementation of a registration/licensure system if the state is
"making progress" toward the implementation of the required system.

Point No. 1: Does it create, expand, or enlarge any agency, board, program, function, or activity of
government? Conversely, does it eliminate or curtail the size or scope of government?

ANALYSIS: Senate Bill 1318 creates a new government licensure system for appraisal management
companies. (-1)

Point No. 3: Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate
activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?

ANALYSIS: Senate Bill 1318 restricts activities in the marketplace for companies engaged in the
appraisal management business. (-1)

Point No. 5: Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely,
does it eliminate or reduce any taxes, fees, or other assessments?

ANALYSIS: Senate Bill 1318 creates a new fee for appraisal management companies, with the fee set
at up to $1,500. In addition, companies are required to post a surety bond in the amount of $25,000.
(-1)

Point No. 12: Does it violate the principles of federalism by increasing federal authority, yielding to federal
blandishments, or incorporating changeable federal laws into Idaho statutes or rules? Examples include citing
federal code without noting as it is written on a certain date, using state resources to enforce federal law, and
refusing to support and uphold the Tenth Amendment. Conversely, does it restore or uphold the principles of
federalism?

ANALYSIS: Senate Bill 1318 is a response to a federal mandate issued under the Dodd-Frank Wall
Street Reform and Consumer Protection Act. It requires states to act to create a new government
regulatory structure, or risk consequences to businesses because they are not covered under a
government regulatory structure. (-1)