Gov. Matt Bevin Integrates Real Estate Boards into New Authority

KY Seal

In continuation of his efforts to provide Kentuckians with efficient and effective government, Governor Matt Bevin issued an executive order today altering the Office of Occupations and Professions to form the Department of Professional Licensing and establishing the Kentucky Real Estate Authority. The order also modifies the structure of and reorganizes four state real estate boards, including the Real Estate Commission, the Real Estate Appraisers Board, the Board of Auctioneers and the Kentucky Board of Home Inspectors.

The newly formed Kentucky Real Estate Authority will be comprised of five members, including one member each from the four reorganized Boards and the executive director of the Authority. This system will provide a single forum for industry leaders to collaborate and develop recommendations for the industry.

The reorganization transfers regulatory authority to the Department and protects individual board members from the threat of antitrust liability. The U.S. Supreme Court ruled last year that state boards comprised of market-based participants must be actively supervised by the state to receive protection from such antitrust liability. The new structure gives the Kentucky Real Estate Authority authorization to approve regulatory changes from member boards and recommend those regulations to the Department for promulgation.

“The Governor’s executive order creates a consolidated structure that will safeguard board members and encourage a more efficient system for shaping and reviewing industry regulations,” said Public Protection Cabinet Secretary David Dickerson.

The new Boards will each be responsible for licensing individuals in their respective sectors, and the Boards can also issue penalties for licensees. Under the terms of the executive order, individuals may appeal Board decisions to the Commissioner of the Department of Professional Licensing, thus applying an additional level of scrutiny to Board decisions.

The reorganization cuts the number of members for each Board to three and will centralize Board resources, including space and staff functions. The new structure is expected to result in cost savings for Kentuckians by reducing Board member salaries and consolidating resources.

The executive order is one of several recent actions taken by Governor Bevin to streamline administrative services and increase government efficiency through the Red Tape Reduction Initiative. The executive order will take effect immediately, and the final copy can be seen here: http://ppc.ky.gov/Documents/EO2016859.pdf

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