K.A.R. 86-1-5 amendments will eliminate fees being charged for several business processes.  All fees in question are $15 or less. The proposed regulation will increase the fee for approval of an original course of instruction from $50 to the statutory maximum of $75.  The purpose of these amendments is to more accurately associate resource costs incurred by the Commission with revenue received through license fees.

K.A.R. 86-1-5 amendments will also provide the option for applicants and licensees to pay the fees associated with a background examination directly to an entity collecting fingerprints for the Commission’s statutorily required background check.  The KBI is planning on implementing an electronic fingerprinting process through a third-party vendor and this amendment will allow for the collection of those fees to be done directly by the vendor.

Summary of Proposed Regulation, Including Its Purpose

The proposed regulation will eliminate fees being charged for several business processes.  All fees in question are $15 or less. The proposed regulation will increase the fee for approval of an original course of instruction from $50 to the statutory maximum of $75.  The purpose of these amendments is to more accurately associate resource costs incurred by the Commission with revenue received through license fees.

The proposed regulation will also provide the option for applicants and licensees to pay the fees associated with a background examination directly to an entity collecting fingerprints for the Commission’s statutorily required background check.  The KBI is planning on implementing an electronic fingerprinting process through a third-party vendor and this amendment will allow for the collection of those fees to be done directly by the vendor.

Reasons the Proposed Regulation Is Required, Including Whether the Regulation Is Mandated by Federal Law.

The proposed regulation is not mandated by federal law and there are no applicable requirements under federal law.

Anticipated Economic Impact upon the Kansas Real Estate Commission.

In fiscal year 2016, the fees being eliminated generated $25,500 in revenue. The loss of this revenue will be moderated by a decrease in the amount of time staff spend processing these fees.  The one increase being proposed will generate approximately $2,500 in new revenue. The net effect of all changes will be a decrease in revenue of $23,000 or about 2.2% of total fee revenue collected by the Commission in fiscal year 2016.

Anticipated Financial Impact Upon Other Governmental Agencies and Upon Private Business or Individuals.

Individual licensees will see a net financial benefit due to the proposed changes.

Less Costly or Intrusive Methods That Were Considered

The Commission is not aware of any less costly or less intrusive methods.