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DISCUSSION AND RECOMMENDATIONS 61Another problem is that each deputy who initially incorporates receives a windfallprofit upon the sale, and subsequent owners would have to make a capital investment,raising the fees necessary to make the deputy financially viable.One mgument in favor of continuing the current incorporation law is that sales allowdeputies to be rewarded for building up their business by providing good service,the same as occurs in the private sector. Some private deputies have built uptheir business by finding good locations and providing good service. However,the value of a deputy registrar comes hugely from the exclusive right to operate ina protected environment. Unlike most private sector businesses, deputy registrarsare protected from competition that could take away some of that business. Undera protected environment, deputy registrars have value even if they provide mediocreservice. In addition, our financial analysis indicates that private deputies arerewarded for building up their business by receiving higher incomes.Some deputy registrars contend that since many sales have already taken place,taking away the right to sell a deputy registrnr would be unfair to those who havepurchased corporate deputy registrars. As of the end of 1993,20 out of78 privatedeputy registrars have been sold, including 4 that were within the_family. Saleprices have ranged up to $108,000, even though none of the large private deputieshave been sold.According toSenateCounsel, a'corporation. has noproperty rightin thecontinuation ofan appointmentas deputyregistrar.Furthennore, some argue that repealing the authority to appoint a corporation asdeputy registrar would be a taking of property rights that could not be done withoutcompensation. We asked Senate Counsel to analyze whether a corporate deputyregistrnr has a property right sufficient to require compensation should theLegislature repeal the Commissioner's authority to appoint a corporation as a deputyregistrar. According to Senate Counsel's analysis, shown in Appendix A, a privatecorporation has no property right in the continuation of an appointment,regardless of how valuable the appointment is to the corporation .To maintain the public's discretion over who becomes a deputy registrar, and tomaintain low capitalization requirements for deputy registrars, we recommendthat:• The Legislature should consider repealing the commissioner'sauthority to appoint corporations as deputy registrars.While those who purchased a corporate deputy registrar may have assumed thatthey would also be able to sell the corporation, we think that it is in the public interestto discontinue sales of deputy registrars.